DBS, OCBC, UOB have enough liquidity to mitigate funding costs: analysts

Glenn Thum, senior research analyst at Phillip Securities Research, expects DBS and OCBC to follow suit. The changes may not be as drastic, however, as the UOB One account had the highest effective interest rate among the three local banks, he said.

The rise in fixed deposits was largely driven by overseas demand. Total deposits and balances of residents outside of Singapore rose 9.1 per cent on year to S$593.6 billion. Of this amount, fixed deposits rose 28.1 per cent to S$356.9 million.

Mahmud also expects that Casa recovery in the fourth quarter of 2023 could help keep the banks’ funding costs in check.