Moody’s: Asset quality of banks broadly stable

“Our outlook for Malaysia’s banking system remains stable," Moody’s Ratings said.

PETALING JAYA: While the asset quality of Malaysian banks is broadly stable, loans to some sectors continue to face stress, with small and medium enterprises (SME) expected to be the most vulnerable borrowers.

Moody’s Ratings said in a report that loans to the real estate and construction sectors also remain a risk to the asset quality of banks, although exposure has decreased gradually over the past two years.