Malaysia's central bank cuts SRR ratio to 3.5% from 4%
[KUALA LUMPUR] Malaysia's central bank said on Thursday it will cut the statutory reserve requirement (SRR) ratio to 3.5 per cent from 4 per cent from Feb 1.
"The decision to reduce the SRR is undertaken as part of a comprehensive effort by Bank Negara Malaysia to ensure sufficient liquidity in the domestic financial system, and to support the orderly functioning of the domestic financial markets," the central bank said in a statement.
The central bank said it has relied on its monetary operations, including the reverse repo facility, to provide liquidity to the banking system as net external outflows reduced the amount of liquidity in the system. As of Jan. 21, this amounted to RM40 billion, it said.
The SRR is a monetary policy instrument to manage liquidity and credit creation in the banking system.
BNM held its key policy rate steady at 3.25 per cent.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say
BNP weighing up to 150 job cuts in Geneva to slash costs
Bitcoin’s wild price swings point to the rising influence of ETF buyers
Citi says European authorities are scrutinising 2022 flash crash