The transaction, expected to close by the end of March, will give the Houston-based American General annuities business with statutory reserves of $ 2.4 billion, the company said.
32.
It added that the SRR for all banking institutions will continue to be observed on the basis of the fortnightly average amount of statutory reserves held by each institution.
33.
The statutory reserve requirement is the portion of a bank's total deposits deposited with the central bank in form of cash or low yielding government securities to control money supply.
34.
Still, banks are reaching the limits of their financial resources to write off bad debts, pushing themselves to the edge by tapping statutory reserves that are part of their assets.
35.
Dealers attributed the generally better sentiments to Bank Negara's decision to lower the statutory reserves requirement, which should free up some measure of liquidity, and the return of foreign funds.
36.
On Friday, BNM announced it was cutting banks'statutory reserve requirement ( SRR ) from 13.50 per cent to 10.00 per cent of total eligible liabilities effective from 16 February 1998.
37.
The transaction, expected to close by the end of March, will give the Houston-based American General annuities business with statutory reserves of $ 2 . 4 billion, the company said.
38.
BORROWING costs will be lowered by at least 0.5 per cent as a result of the reduction in the statutory reserve requirement ( SRR ) for banks and finance companies.
39.
As such, the impact of the cut in statutory reserve requirements to 10 per cent of eligible liabilities from 13.5 per cent is expected to have minimal impact on interest rates.
40.
The proposed reduction by three percentage points of the 13 percent statutory reserve requirement of banks will be complemented by a three-percentage-point increase in the banks'liquidity reserves, currently at 4 percent.
