PETALING JAYA: The capital ratio of Malaysia’s banking system will remain above the regulatory minima, with sufficient high-quality liquid assets to meet heightened cash flow demands, should the domestic economy turn gloomy.
That is the conclusion of the annual multi-year, top-down macro solvency stress test of Bank Negara’s Financial Stability Report for the second half of 2023, conducted to evaluate the potential impact of adverse macroeconomic conditions and the resultant financial strains on individual banks.
