1MDB woes exacerbate bank cash squeeze in Malaysia: Asean Credit

Bloomberg | .

Malaysia’s banks are charging one another the most to borrow in six years as the oil-price slump, a falling ringgit and default concerns dent confidence.

The three-month Kuala Lumpur interbank offered rate, a gauge of funding availability, rose to 3.87 percent in December, 62 basis points more than Bank Negara Malaysia’s benchmark rate and the biggest gap since January 2009, data compiled by Bloomberg show. The premium was 61 yesterday, compared with an average of 22 for the past decade. The ringgit slid 6.2 percent against the dollar last quarter as crude oil plunged 42 percent.

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