what is the fixed deposit rate in ocbc malaysia

The bank has over 630 branches in 18 countries and territories, with its key markets being Singapore, Malaysia, Indonesia and Greater China. OCBC Malaysia is also set to hit this target, says Yeo. Malaysia’s largest banking groups, such as Malayan Banking, Public Bank, RHB Capital, and Alliance Financial Group, have all indicated they can meet the standards for LCR, according to media reports. Yeo says this has helped reduce the offered rates for deposits slightly, while Klibor dropped to 3.7% as of April 11. Three-month Klibor (the Kuala Lumpur Interbank Offered Rate) rose to around 3.8% in mid-January, meaning banks had relatively small margins given one-year deposits have been offered at up to 4.25%.īNM subsequently announced a slight easing of LCR liquidity requirements in February 2015, broadening the definition of applicable funds. The June deadline led banks to raise deposit returns in order to attract them, which in turn led interbank rates to rise.

The LCR is designed to ensure banks hold enough high-quality liquid assets to withstand a collapse in liquidity over a 30-day period. In 2014, Bank Negara Malaysia (BNM), the country’s central bank, stated that local banks must reach a liquidity coverage ratio (LCR) of 60% by June 1 of this year, to be gradually increased to 100% by January 2019. It’s quite challenging to give customers a lift beyond fixed deposits.” “Compared with a 4.25% one-year deposit rate, US dollar bonds from a corporate with an ‘A-’ rating would offer a yield of about 3.8%, even at long tenors. “The 12-month fixed rate deposit at a lot of banks is 4% to 4.25%,” she says. This has had an impact among HNW customers for certain fixed income investments, in particular. Banks would do well to offer new products to take advantage of these, says Evelyn Yeo of OCBC Malaysia.Ī combination of high deposit rates and a weakening local currency is limiting demand among Malaysia’s retail investors for certain investment products, and raising interest in equity-linked unit trusts and high returning deposits over fixed income investments.Įvelyn Yeo, head of wealth management for OCBC Malaysia, says banks in the country have been in competition to attract deposits for the past nine months, raising rates to do so. A mixture of a declining currency and banking regulations has caused various uncertainties to emerge among the country's retail investors.

What is the fixed deposit rate in ocbc malaysia