Tuesday, April 5, 2011

#Flash* Number of banks to determined by market - Zeti

KUALA LUMPUR: ''The number of local banks in the country will have to be determined by the market in the current environment, said Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.

She said what was more important was that the banks had reached a minimum size and were well capitalized, along with quality capital that has been able to take advantage of economy of scale, and were able to invest in TECHNOLOGY [] and provide financial products and services required by our economy.

She was speaking to reporters here on Tuesday, April 5 after delivering the keynote address at the Financial Inclusion Policymakers Forum.

On how inflation would impact the rate outlook, Zeti said the nature of inflation, whether demand driven or supply factors and also whether temporary or more permanent, would have to be monitored carefully.



She also said assessment will be made to ascertain risk to growth, as well as extent of degree of accommodation needed to be given to support these growths.

Zeti the assessment will be made known in the monetary policy in May.

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