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
  • Australian banks significantly improve funding and liquidity metrics
    The banks have enough liquid assets (excluding self-securitized RMBS) to cover, on average, 60% of their wholesale funding liabilities maturing in the next 12 months. This coverage ratio is at a record high. The banks are also less vulnerable to shocks in the wholesale funding market than they were before the global financial crisis in 2008-09… Press Release l Full Report