Government deposits contracted for the 12th consecutive month.
Malaysian banks have been reporting total system deposits growth of below 4% for over 21 months. In June, growth moderated to 3.5% in June from 3.7% in May. Maybank Kim Eng noted that CASA nevertheless sustained a faster pace of growth of 7.8% YoY (8.9% YoY in May).
"By deposit holder, business deposits continued to gather momentum, rising 5.5% YoY in June versus 4.6% YoY in May, but growth in retail deposits slowed to 3.9% YoY from 5.1% YoY in May. The drag continues to emanate from Government deposits, which contracted for the 12th consecutive month (-7.4% YoY)," added Maybank Kim Eng.
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