The considerable increase in bank deposits has drawn much attention to so-called “excess savings.”
According to the People’s Bank of China (PBC), the central bank, renminbi deposits registered a significant rise in 2022 over the previous year. Household deposits contributed most, with its increase last year 7.94 trillion yuan ($1.14 trillion) more than that in 2021. Outstanding renminbi deposits totaled 258.5 trillion yuan ($37.28 trillion) by the end of 2022, up 11.3 percent year on year.
Excess savings are usually defined as money on top of what consumers are on
