KUALA LUMPUR: The country’s banking sector is expected to be under constraints this year especially in terms of income and loan growth due to effects from the COVID-19 pandemic which has adversely impacted the local as well as the global economy.
Despite this, well-capitalised Malaysian banks will be facing the headwinds from a position of strength and make a strong recovery.
MIDF Amanah Investment Bank Bhd’s senior analyst Imran Yassin Yusof viewed there is still a lot of uncertainties plaguing the banking sector in terms of the impact of the pandemic on the local economy.
"It is very difficult to give a timeline for when banks would recover as it depends on how fast or the magnitude of the economic recovery.
"However, we believed Malaysian banks will be facing the headwinds from a position of strength, due to the fact that Malaysian banks are well capitalised, hence it would be able to weather the current crisis. We opined that Malaysian banks will recover as the economy starts to recover,” he told Bernama.
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