Highlights

save malaysia!

Author: savemalaysia   |   Latest post: Sun, 18 Apr 2021, 6:33 PM

 

Moody’s: Pace of recovery at Malaysian banks set to exceed regional peers’

Author:   |    Publish date:


KUALA LUMPUR, April 8 ― Moody's Investors Service says in a new report that the asset quality of Malaysia's largest banks has been more resilient to the coronavirus-induced economic disruption than their peers in Indonesia, the Philippines and Thailand ― the major Southeast Asian emerging markets.

This resiliency, along with strong capital and liquidity buffers, will enable Malaysian banks to restore profitability faster than their regional peers.

“Despite the economic shock triggered by the pandemic, the asset quality of the largest Malaysian banks has remained sound, thanks to their greater focus on retail loans that are largely secured, well-regulated and supported by ample financial assets,” said Tengfu Li, a Moody's analyst.

The largest banks in Malaysia have the smallest share of loans under regulatory relief programmes compared with regional peers, most of which are collateralised mortgages and auto loans, he said.

In contrast, loans covered by regulatory support measures in the other countries are those predominantly exposed to businesses that took a direct cash flow hit and do not provide collaterals that are as liquid.

This stronger asset quality will help Malaysian banks restore profitability faster than their peers, as their relatively lower asset risk will save them the need to keep provisions as high as their peers.

Moreover, the banks' capital and liquidity buffers ― though not as high as those of their peers ― are still strong and enough to cover any potential financial stress, he asserted. ― Bernama

 

https://www.malaymail.com/news/money/2021/04/08/moodys-pace-of-recovery-at-malaysian-banks-set-to-exceed-regional-peers/1964764

Share this

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View Trading Signals and run Live Backtest
MQ Affiliate
Earn rewards with MQ Affiliate Program
 
 

520  401  580 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 UCREST 0.35+0.055 
 FOCUS 0.15-0.09 
 MINDA 0.155-0.005 
 LKL 0.315-0.025 
 KEYASIC 0.15+0.01 
 RUBEREX 1.47+0.10 
 CAREPLS 2.08+0.16 
 FOCUS-PA 0.015-0.005 
 BJCORP 0.38-0.015 
 HSI-HGK 0.175-0.02 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. Top Glove, Hartalega, Kossan: JP Morgan Reconfirms Glove Price Targets Amid Dwindling Paper Profits of Glove Short Seller Trying to Make Sense Bursa Investments
2. STEEL very underrated and possibly to FLY! The Huat Project
3. LB Aluminium has good profit growth - Koon Yew Yin Koon Yew Yin's Blog
4. GREATEC (0208) - Technical Chart Analysis Bursa Malaysia Free Trading Education
5. ALUMINIUM STOCKS UP BUT WZSATU STILL CHEAP: SEE WZSATU VERSUS PRESS METAL, LBALUM & ALCOM, Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
6. How to avoid the coronavirus? Koon Yew Yin Koon Yew Yin's Blog
7. Premier: Glove Supply Constraints Persist 1 Year after the Start of the Pandemic Trying to Make Sense Bursa Investments
8. Americans are mentally sick - Koon Yew Yin Koon Yew Yin's Blog
PARTNERS & BROKERS