Bank Negara stress test: Impairments to rise above 4% of loans

Under the assumed scenario of economic and financial shocks arising from the pandemic, it said overall impairments are projected to rise above 4% of loans by end-2021, mainly driven by higher business impairments.

KUALA LUMPUR: Bank Negara Malaysia’s stress test showed banks would continue to remain resilient in the face of an expected increase in credit losses.

In its “Financial Stability Review – First Half 2020” report issued on Wednesday, it said overall impairments were forecast to rise above 4% of loans next year following the fallout from the Covid-19 pandemic.