Banks equipped to deal with defaults

Bank Negara stress test shows impairments may rise above 4% of loans

KUALA LUMPUR: Banks in the country will remain resilient despite expected increase in impairments where firms in vulnerable sectors could default in their payments, Bank Negara has affirmed.

The central bank ran a stress test, under an assumed scenario of economic and financial shocks due to the pandemic, and found that overall impairments are projected to rise above 4% of loans by end-2021.