Malaysia cuts banks' statutory reserve requirement ratio

Kuala Lumpur

MALAYSIA's central bank has cut the statutory reserve requirement (SRR) ratio of banks to 3.5 per cent from 4 per cent with effect from Feb 1 to address a liquidity crunch in the financial system following capital flight from funds returning to higher-yielding assets in the United States and Malaysians seeking steadier currencies than the depreciating ringgit.

Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 3.25 per cent an…