KUALA LUMPUR: Malaysia’s banking sector is likely to stand firm against economic headwinds with the sector’s asset quality closely correlated to employment given its large share of household loans, according to the latest S&P Global Ratings midyear outlook 2024 report "Searching for calmer waters” released today.
In a country-by-country report on global banks, the credit ratings provider said "high household leverage poses some risk” although stable employment and adequate household financial assets are mitigating factors.
