In the context of declining net interest margins (NIM) and rising deposit interest rates as system liquidity faces increasing pressure, improving the Current Account Savings Account (CASA) ratio plays an important role in helping banks maintain operational efficiency. The CASA ratio improved across the banking system in 2025, although the extent of improvement varied among banks, depending on their respective foundations and strategies. As credit and deposits simultaneously increase toward the end of the cycle, the deposit structure becomes a key indicator reflecting the quality of growth and the ability to control funding costs, particularly as the gap between credit growth and deposit growth persists. Banks that rely heavily on term deposits face higher interest rate pressures, while institutions that maintain a strong proportion of CASA enjoy greater flexibility in managing interest rates and improving profit margins amid declining net interest margins (NIM). CASA landscape across the banking industry and by bank groups in Q4 2025 Year-end payment flows continued to show a clear seasonal pattern, as payment settlements, account closures, and capital circulation increased sharply across the system. However, intense competition in deposit interest rates among banks during the peak period made idle funds more sensitive to yield differences, […]
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