The liquidity of the Malaysian banking system remains healthy despite some tightening, according to RAM Ratings’ analysis.
The rating agency said on Tuesday the sector’s Basel III liquidity coverage ratio (LCR) stood at 125% as at end-January 2016 – higher than the final requirement of 100% to take effect from Jan 1, 2019.
“We also derive comfort from the knowledge that Bank Negara Malaysia (BNM) has various tools to manage the system’s liquidity,” said RAM Ratings’ xo-head of financial institution ratings Sophia Lee.
Based on the RM50bil of statutory deposits as at end-January 2016, the recent 50-basis points cut in the statutory reserve requirement (SRR) ratio to 3.5% from 4.0% previously would boost the system's liquidity by RM6bil.
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
The rating agency said on Tuesday the sector’s Basel III liquidity coverage ratio (LCR) stood at 125% as at end-January 2016 – higher than the final requirement of 100% to take effect from Jan 1, 2019.
“We also derive comfort from the knowledge that Bank Negara Malaysia (BNM) has various tools to manage the system’s liquidity,” said RAM Ratings’ xo-head of financial institution ratings Sophia Lee.
Based on the RM50bil of statutory deposits as at end-January 2016, the recent 50-basis points cut in the statutory reserve requirement (SRR) ratio to 3.5% from 4.0% previously would boost the system's liquidity by RM6bil.
No comments:
Post a Comment