RAM expects banks’ provision for impairments to remain elevated

“We believe that Malaysian banks’ strong loss-absorption buffers will tide them over the Covid-19 crisis, ” RAM’s co-head of financial institution ratings Wong Yin Ching said in a statement on Friday.

KUALA LUMPUR: RAM Ratings expects the banking industry’s provision for allowance for impairments to remain elevated in the coming quarters as they continue to adopt a prudent stance.

The eight banks’ gross impaired loan (GIL) coverage (with regulatory reserves) and the industry’s common equity tier-1 capital ratios stood at a robust 114% and 14.6%, respectively, as at end-September, it said in a statement.