Banks in Malaysia will continue to demonstrate resilience this year on the back of solid fundamentals, according to RAM Ratings. The ratings agency has maintained a stable outlook on the country's banking sector, although it remains cautious on the risk of contagion from the Russia-Ukraine war. The profit performance of Malaysian banks rebounded strongly in 2021 on the back of lower provisioning expenses, broader net interest margins, and significantly smaller modification charges. RAM Ratings said risks to growth have tilted to the downside on still-evolving geopolitical tensions stemming from Russia and Ukraine. The agency expects the funding and liquidity profiles of banks to stay sound and supportive of new lending.
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