Commercial banks now a day have to complied with the new BASEL III requirements in which needs to maintain a higher statutory reserve...

It is the third instalment of Accords developed by the Basel Committee on Banking Supervision, a global voluntary regulatory framework adopted by BNM recently for stress test on banks' capital adequacy and market liquidity risk.

Basel III supposed to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. The CET1/RWAs ratio of 4.5% must be maintained at all times by the banks from year 2015 onwards.

basically yes, and strive for more deposits from wholesales and retail depositors at the same time. Hence now you may see there are a lot of fixed deposit preferential rate promotions among the banks.

This post has been edited by cappuccino vs latte: Jan 20 2016, 10:32 PM