Greatest threat for Malaysian banks - property loans

The 25 basis point increase in the Overnight Policy Rate (OPR) will benefit fixed deposit (FD) savers after the real rate of return on deposits will return to positive in 2018.

PETALING JAYA: The latest report by Moody’s Investors Service has set off alarm bells over the direction of Malaysia’s financial system, after the ratings agency called property loans the greatest threat for Malaysian banks.

The worrying remark in Moody’s 2019 outlook report for Asia-Pacific banks came after Bank Negara’s constant assurance that the domestic property loans are sound, with the industry’s gross impaired loans kept under control.