Banks to benefit from no OPR cuts

Banks are expected to benefit from the central bank's decision to keep the overnight policy rate unchanged, supporting their earnings and loan growth.

The central bank's decision to keep the overnight policy rate unchanged is expected to support banks' earnings and loan growth. Earnings of Philippine banks went up by 167 percent to P14312 billion in the first half from WEB Gross total loan portfolio TLP declined YoY by 39 percent to P107 trillion as of end-March 2021 slower than the 110. WEB Pressure points can arise from two factors First funding needs may still expand as the COVID-19 pandemic. WEB ON MAY 11 2022 the Monetary Policy Committee MPC of Bank Negara Malaysia BNM..

The central bank's decision to keep the overnight policy rate unchanged is expected to support banks' earnings and loan growth. This is because lower interest rates make it cheaper for businesses and consumers to borrow money, which can lead to increased spending and investment. In addition, lower interest rates can make it more attractive for savers to deposit their money in banks, which can provide banks with a source of funding for lending.

The central bank's decision to keep the overnight policy rate unchanged is also expected to support the ringgit. This is because higher interest rates can make it more attractive for investors to hold their money in ringgit-denominated assets, which can lead to increased demand for the ringgit and a stronger exchange rate.

The central bank's decision to keep the overnight policy rate unchanged is a positive development for banks and the ringgit. It is expected to support banks' earnings and loan growth, and it is also expected to support the ringgit's exchange rate.