Banks contend with higher loan-to-deposit ratios

CIMB said it was upgrading the sector’s earnings growth forecast to 10% from an earlier 7% for this year, and 6% from 2% for next year.

PETALING JAYA: Amid earnings that hit another new quarterly high, local banks are being confronted with higher loan-to-deposit ratios (LDR).

Analysts pointed out that the sector’s LDR rose to 95.2% in June from 93.6% in March, which could likely result in a widespread increase in deposit competition.