PETALING JAYA: Net interest margin (NIM) for banks, which has been under pressure since mid-2010, is expected to come under further compression, with an analyst projecting it to hover around 2.2% this year compared with about 2.3% last year.
Analysts attributed the continued margin pressure to competition in certain loan segments, stringent responsible lending guidelines, efforts to shore up deposits in view of the Basel III requirement to have stronger liquidity and capital base, and stagnation in the overnight policy rate.