S&P sees potential in Malaysian Islamic banking

“The sector’s potential for long-term growth is promising, and the country’s Islamic banks, in particular, are likely to benefit from the issuance of international sustainable sukuk,' S&P said.

KUALA LUMPUR: S&P Global Ratings has forecast Malaysian Islamic banks to grow at a compound annual growth rate of 6% to 8% from 2022 to 2026.

The local Islamic banks could account for close to 45% of the overall commercial banking loan book by the end of 2026, up from 37.5% in January 2022, S&P said in its report en titled Growing belief in South-East Asia’s US$290bil (RM1.27 trillion) Islamic banking market published yesterday.