August deposit growth slows sharply

APRA has released its monthly banking statistics this morning and deposit growth slowed sharply in August.

The deceleration was driven largely by ongoing falls in the segment in the financial corporations segment. One might speculate that this equates to less idle cash in the banking system:

As you can see, the recent rebound in household deposits eased but held up.

The year on year trend remains firmly down and broke a new low for the move at 6.55%:

And aggregate deposit growth flattened out after a good little run:

I expect ongoing deceleration.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.