Healthy performance seen for Malaysian banks

O&G risks: Wong (left) and Lee see some pockets of vulnerability in the oil and gas industry.

THE banking industry’s gross impaired-loan (GIL) ratio is expected to stay below 1.7% this year compared with the all-time low of 1.5% last year despite vulnerability in the oil and gas (O&G), commercial real estate and lower-income household segments.

RAM Ratings co-head of financial institution ratings Wong Yin Ching, who is maintaining a stable outlook on the Malaysian banking sector in 2018, says the Malaysian banking system’s GIL ratio ended 2017 at a historical low of 1.5%, and compares favourably against those of its Asean peers.