Malaysian banks' deposits growth slowed to 2% in December

Business deposits contracted 2.3%.

While loan growth continued to tick up YoY in Dec 2016, Maybank Kim Eng analysts said system deposits growth slowed further to just 2% YoY in Dec 2016. In contrast, however, CASA expanded at a faster pace to total deposits of 5.0% YoY in December from 4.5% YoY in Nov 2016.

"By deposit holder, retail deposits grew 5.1% YoY in Dec 2016 versus 5.4% YoY in Nov 2016 but business deposits contracted 2.3% YoY while government deposits contracted 3.6% YoY (versus -3.8% YoY and -6.1% YoY respectively in Nov 2016)," noted Maybank Kim Eng.
 

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