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: A potential better-than-expected loans growth and gross impaired loan ratio for the banking sector in 2018 could be largely offset by downside risks from margin erosion, said analysts.
CGS-CIMB Research said this was based on the fact that most banks saw a contraction in their margins in the third quarter (Q3).
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