Statement on Statutory Reserve Requirement (SRR)Ref No : 05/20/02 05 May 2020 Embargo : For immediate release
Bank Negara Malaysia is announcing today that MGS and MGII can be used by banking institutions to fully meet the SRR compliance effective 16 May 2020. This flexibility is available until 31 May 2021. This measure will release approximately RM16 billion worth of liquidity into the banking system. The Statutory Reserve Requirement (SRR) ratio remains unchanged at 2.00%.
This measure is part of Bank Negara Malaysia’s continuous efforts to ensure sufficient liquidity to support financial intermediation activity.
The SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy. The Overnight Policy Rate (OPR) is the sole indicator used to signal the stance of monetary policy, and is announced through the Monetary Policy Statement released after the Monetary Policy Committee meeting.
Bank Negara Malaysia
05 May 2020
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