(From left): RAM Ratings co-heads of financial institution ratings Sophia Lee and Wong Yin Ching.
KUALA LUMPUR: Islamic financing is expected to drive Malaysia’s overall banking system’s credit expansion in 2021, said RAM Ratings, while reiterating its stable outlook on the sector.
The ratings agency said in a statement that Islamic financing is expected to grow 7% as compared to 2% for conventional banks, with growth underpinned by household financing.This would be in line with the performance recorded in 2020, with Islamic financing growing 8.1% as compared to just 1% for conventional financing.
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