Chart of the Week: Malaysian banks' loan-to-deposit ratio dipped to 88.7% in February

The loan-to-fund ratio was lower at 83.4%.

According to Maybank Kim Eng, the industry’s loan/deposit ratio (LDR) dipped to 88.7% in Feb 2017 from 89.4% end-Jan 2017, while the loan/fund ratio was a lower 83.4% (84.0% end-Jan 2017) and the loan/fund and equity ratio was 74.4% versus 74.9% end-Jan 2017.

"In computing the LDR, deposits exclude interbank deposits while loans exclude loans sold to Cagamas and interbank loans. Loans also exclude financing funded
by Islamic Investment Accounts," the analyst firm added.