Chinese banks' deposits grew RMB1.11t in January

Find out what factors spurred the growth.

According to CCB International Studies, deposits grew RMB1.11t in January, constituting a surprisingly strong start the year.

Here's more from CCB International Studies:

We had initially expected an outflow of deposits following end-of-year window dressing by the banks in December.

The strong rise in new loans could be a factor behind the deposit growth we have seen as some smaller banks may have discreetly asked for some new lending to be re-deposited as deposits toward the month end.

Chinese New Year could also be a factor as companies and retail depositors stock up on cash (out of wealth management products) in preparation for the holidays.

While this was a positive start to the year for deposit growth, we continue to believe that the ability to attract and retain deposits will be a major challenge facing the banking sector in 2013.