Moody’s: Islamic banks resilient

In a statement yesterday, Moody’s said of the seven largest Islamic banks in Malaysia, five are subsidiaries of domestic banking groups. These five, with conventional operations, have a heavy concentration on retail financing, which is less vulnerable to an economic downturn than business financing.

PETALING JAYA: Malaysian Islamic banks are expected to remain resilient amid the coronavirus (Covid-19) fallout, underpinned by heavy concentration on retail financing, according to Moody’s Investors Service.

In a statement yesterday, Moody’s said of the seven largest Islamic banks in Malaysia, five are subsidiaries of domestic banking groups. These five, with conventional operations, have a heavy concentration on retail financing, which is less vulnerable to an economic downturn than business financing.