South and South-East Asia financial services ratings associate director Nancy Duan said the financing growth for Islamic banks was expected to be driven by household credit, such as mortgages and hire purchase credit, and less likely from personal loans and credit cards this year, given the higher credit risk settlement.
KUALA LUMPUR: S&P Global Ratings expects the overall banking growth in Malaysia to be mainly driven by Islamic banks which have been growing at a robust pace in the past decade.
The credit rating agency said that the Malaysian banking sector loan growth was projected to be around 6% in 2021, up from 3.4% in 2020, while Islamic banking could easily double the loan growth at 10 to 12% or even higher.
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