PETALING JAYA: Bank Negara has announced that the Statutory Reserve Requirement (SRR) ratio will be lowered by 100 basis points from 3% to 2% in an effort to shore up liquidity in the banking system.
The move, which will take place effective today, is in addition to each principal dealer being able to recognise MGS and MGII of up to RM1bil as part of the SRR compliance. These combined measures will release approximately RM30bil worth of liquidity into the banking system, the central bank said in a statement yesterday.
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