S&P sees Malaysian banks’ recovery now further away due to Covid

Strong capital positions, sound liquidity conditions, and prudent risk management practices of local banks still anchor S&P's current credit assessment of Malaysian banks.

KUALA LUMPUR: S&P Global Ratings expects Malaysian banks will continue to be an Asian outlier in their recovery path and the recovery will be further away due to the flare-up of new Covid-19 waves and the inevitable disruptions in near-term economic prospects.

In its report on Wednesday, it said the path to normalisation is “likely to be protracted”. The six-month blanket moratorium revealed by the government on June 28 should further delay the timeline for banks' return to normal.