Banks beefing up bancassurance ops

The latest bancassurance deal that came on the radar of investors was the strategic partnership between CIMB Group Holdings Bhd and Japan

PETALING JAYA: In a bid to garner a larger slice of non-interest income or fee-based business, banks are beefing up their bancassurance portfolios amid slower loan growth and margin compression.

Another reason for the strong focus on bancassurance and fee-based income is the Basel III liquidity coverage ratio (LCR), which requires banks to hold a higher percentage of quality liquid assets next year to make up for the shortfall in earnings. High-quality liquid assets include cash and marketable securities.