PETALING JAYA: 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.
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