CIMB Research: Slow deposit growth at banks a concern

Asset quality: The industry’s total deposits grew by 3.5 year-on-year at end-June 2017, below the 5.7 year-on-year loan expansion.

PETALING JAYA: The expected negative impact from the adoption of the new accounting standard MFRS 9 that will come into effect in January and unattractive valuations have CIMB Research maintaining its “neutral” call on banks.

The research house said the slow deposit growth in the banking system did not bode well for banks’ loan expansion and margins.