Banks demonstrate resilient credit portfolios, S&P Ratings says

S&P Ratings said local banks built up their provisioning buffer in the first three quarters of 2020 amid a sharp economic contraction following the Covid-19 outbreak.

KUALA LUMPUR: Malaysian banks are demonstrating resilient credit portfolios as they transition out of the blanket six-month moratorium in the country, S&P Global Ratings said.

It said in a statement on Tuesday that however, the underlying strength of affected borrowers remains to be seen and the initial recovery of repayments could prove fragile.