Uncertain outlook for banking sector seen continuing


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: Headwinds will continue to persist in the banking sector, which is expected be dragged down by moderate loans and soft capital market activities.

Kenanga Research said it views the industry with caution going into 2019, as uncertainties and headwinds prevailed, with a lack of catalysts or game changers.

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