Banks to grow asset selectively

The 25 basis point increase in the Overnight Policy Rate (OPR) will benefit fixed deposit (FD) savers after the real rate of return on deposits will return to positive in 2018.

PETALING JAYA: Banks are expected to maintain a cautious stance and grow asset selectively through 2018.

According to Kenanga Research, banks’ focus on selective asset growth is due in part to higher credit charge, following the implementation of the new accounting standards, MFRS9, despite the optimistic outlook on the country’s economy this year.