CIMB analyst Winson Ng wrote in a note today that Malaysian banks' deposits grew 3.5% year-on-year in June compared to the industry's loan growth at 5.7%. "The weaker deposit growth (relative to loan growth) would be negative for banks. "As at end-Mar 17, most local banks in Malaysia had LD ratios of close to or exceeding 90%. Among the local banks, Maybank's ratio was the highest at 99.2% at end-Mar 17 while three other banks had above-90% LD ratios. If the deposit growth remains at the 3%+ level (or lower) and there is no drastic slowdown in loan growth, banks' LD ratios will continue to climb," Ng said.

Source: The Edge Markets August 08, 2017 03:22 UTC