Malaysian banks' system deposits finally recover after 21 months

Deposits grew 4.3% in July.

Total system deposits growth, which had been sub 4% for over 21 months, finally broke through the 4% ceiling to 4.3% YoY in July, according to Maybank Kim Eng. CASA growth also picked up pace to 9.7% YoY from 7.8% YoY in June.

"By deposit holder, business deposits continued to gather momentum, rising 8.5% YoY in July versus 5.5% YoY in June, while growth in retail deposits was stable at 4.0% YoY (3.9% YoY in June). Having contracted over the past 12 consecutive months, Government deposit growth finally turned positive (+8.4% YoY) in July," added Maybank Kim Eng.