0225 GMT - Malaysia's recent 25 bps policy rate cut appears mildly negative for banks' margins due to some pressure on net interest margins, but TA Securities expects the impact to be manageable. Lower borrowing costs may lift consumer sentiment and support loan growth, while improved cash flow could ease asset quality risks, analyst Li Hsia Wong says in a note. Added liquidity from the statutory reserve-requirement ratio cut should help cushion banks' earnings, she adds. TA maintains its 2025 banking sector's loan growth forecast at 5.7% and keeps an overweight rating on the sector. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
July 09, 2025 22:25 ET (02:25 GMT)
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