Bright spot for banking sector

Sulaiman: We are of the view that credit impairments and incremental credit costs for 2023 will remain manageable with the support of moderate interest-rate hikes and continued economic recovery.

PETALING JAYA: With 2022 coming to an end, banks are expected to brace for a tougher business environment amid macro-economic headwinds in 2023.

Despite these challenges, bankers and analysts said not all is doom and gloom as there are bright spots that would position the sector on a growth trajectory, noting that they expect a decent loan growth of between 4.5% and 5.5% for next year.