Financial Institutions

Highlights

• 15 May 2013
  • Stable outlook on Malaysia’s banking system for the next 12-18 months
    The outlook reflects an accommodative monetary and fiscal environment, and our expectation of a 5% growth in GDP and a 10% growth in loans. The twin growth areas will support the banks’ asset quality, capitalization and funding. However, key issues to watch out for are the high level of household debt and the appreciation in house prices… Press Release l Full Report
• 13 May 2013
  • Shadow banking continues to weigh on the credit profiles of Chinese banks
    The latest regulatory steps to tighten controls on wealth-management products -- part of the Mainland's shadow banking market -- are credit positive for Chinese banks. However, the opacity associated with shadow banking products and the threat of loss and contagion outweigh the potential benefits they provide by diverting riskier borrowers from the formal banking system… Press Release l Full Report
• 11 Apr 2013
  • Negative outlook for Mongolian banking system
    The negative outlook reflects the challenges the banks face in managing what will likely be a period of rapid loan growth in an economy that is increasingly exposed to commodity-driven boom-bust cycles. There is also the presence of structural features, such as high loan concentrations, weak risk-monitoring systems, and the developing character of the regulatory framework… Press Release l Full Report