The Malaysian Banking Sector Maintains a Stable Outlook

Updated on Friday 21st September 2018

Moody’s, one of the top credit ranking agencies, maintains a stable outlook for the Malaysian banking sector. One of the primary reasons for this favorable evaluation is the fact that this year the sector preserved its strong operating conditions. Strong capital and liquidity buffers were also some of the reasons for the favorable outlook. One of our lawyers in Malaysia can offer additional information about the investment climate in this field.
 

Favorable projections for Malaysia


Moody’s Investor Service based its latest evaluation of Malaysia’s banking sector on a set of items such as a stable asset quality trend, strong capital, and liquidity buffers. Among these traits of the banking system, the rating was also based on the robust operating conditions in the country, which have remained continuous.

Officials from the credit ranking agency have said that there is no real prediction for any changes of these favorable traits in the following eighteen months, this is why the ranking is a stable one. Another specification was made regarding the evolution of the loan sector, where growth is expected to be modest in 2018, because of a more prudent and moderate sentiment in the corporate sector. One of our lawyers in Malaysia can give you general information about the loan policy for local businesses.
 

The Malaysian banking sector 


The Malaysian banking sector is one that has gradually gained global recognition, having recorded a good economic growth in 2017. With the private sector being the main driver for this growth, it is expected that the strong economic growth in 2018 will continue. Foreign investors have a portfolio of equity funds from which to choose from if they are interested in investing in this sector. As far as the financial services sector is concerned, investors have a multitude of options to explore Opportunities here are related to banking intermediaries, insurance companies, capital market intermediaries or even investments in the financial technology/fintech sector.

For more information about investments in the banking sector in Malaysia and the laws that govern this business field, please contact our law firm in Malaysia