With the banking system’s loan to deposit (LD) ratio on the rise and squeeze on net interest margin (NIM), analysts and industry observers say Bank Negara may reduce the statutory reserve requirement (SRR) from the current 4% soon to ease lending constraints.
The industry’s LD ratio, according to Maybank IB Research, was a far cry from the average 78% that it recorded in 2009. The ratio continued to climb and crossed the 90% mark to 90.4% at end-August.
NIM spreads (i.e. the spread between average lending rate and average deposit rate) had narrowed further in August to 1.32% from 1.35% in July, being the lowest in recent times due to declining lending rates, the research house noted.
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The industry’s LD ratio, according to Maybank IB Research, was a far cry from the average 78% that it recorded in 2009. The ratio continued to climb and crossed the 90% mark to 90.4% at end-August.
NIM spreads (i.e. the spread between average lending rate and average deposit rate) had narrowed further in August to 1.32% from 1.35% in July, being the lowest in recent times due to declining lending rates, the research house noted.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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