Malaysia's Islamic banks have better growth stability and quality than others

SINGAPORE: Moody’s Investors Service says that Islamic banks in Malaysia show greater growth stability and better asset quality when compared to their Indonesian counterparts, despite the similar macroeconomic headwinds faced by both systems.

“The divergence between the two systems is notable, considering the fact that the two economies have exhibited similar economic and credit growth trends, and banks in Malaysia and Indonesia show far less difference in the performance of their conventional loans,” said Simon Chen, a Moody’s vice president and senior analyst.