Banks well-positioned to face challenges

RAM Ratings' Wong expects loan growth to still be led by the Islamic banking sector, which contributed over 80% of the industry’s growth in 2022.

KUALA LUMPUR: Malaysian banks are well- positioned to face potential asset quality deterioration arising from inflationary pressures, higher interest rates and the threat of slower global growth, says RAM Rating Services Bhd (RAM Ratings).

Co-head of financial institution ratings Wong Yin Ching said the collapse of the Silicon Valley Bank (SVB) and two smaller banks in the United States would have no rating impact on domestic banks.