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Bank Industry Overview: Malaysia Jan 06
Standard & Poors, Jan 2006
Abstract
The outlook on the Malaysian banking system remains stable, while industry risk is moderate by international standards. Capitalization is satisfactory, and there has been overall progress in basic risk management techniques. Asset quality has benefited from better economic conditions and debt restructuring efforts undertaken by the banks over the years. The industry structure allows for moderate competition, and there has been demonstrable government support for the banking system. Still, the industry faces key challenges, such as declining interest margins, the likely evolvement of the banking industry structure, the maintenance of loan quality in high-growth areas of mortgage and auto financing amid intense competition, and the propensity for corporate borrowers to overleverage. Given continued pressure on interest margins, the earnings profile...
Companies mentioned in this report are: Malaysia,Malayan Banking Bhd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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