Local banks’ exposure to Indonesia not significant

Malaysian banks have also carried out extensive business-restructuring activities within their Indonesian portfolios in the past few years, providing them with some good buffers to face the current economic challenges.

PETALING JAYA: At 10-15% of their loan books, Malaysia’s top banks have a meaningful - but not significant - exposure to the Indonesian market, which is currently facing rising economic risks.

S&P Global Ratings analyst Rujun Duan told Starbiz that compared to the larger local banks in Indonesia, Malaysian banks’ targeted customer bases were also differentiated, generally avoiding direct banking with mass market and less-known SME clients.