Bank Negara’s decision to cut the SRR by 100bp on Thursday followed a 50bp SRR cut in November 2019.
KUALA LUMPUR: Bank Negara Malaysia’s move to cut the statutory reserve requirement (SRR) by 100 basis points will bring about several benefits by releasing this liquidity into the banking system.
Maybank Investment Bank Research said the freeing up of RM30bil or 1.5% of total deposits by reducing the SRR to 2%, could firstly assist in improving net interest margins (NIMs) once the additional funds are invested.
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