Loss-absorbing capacity strong

The central bank said banks remained well capitalised to withstand potential stress and could continue to support credit flows to the economy.

KUALA LUMPUR: The loss-absorbing capacity of banks in the country remains strong, with excess capital buffers of RM131.9bil as of January 2022, according to Bank Negara.

The central bank said banks remained well capitalised to withstand potential stress and could continue to support credit flows to the economy.

“Capital ratios rose slightly in January 2022 due to recognition of year-end profits.