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IFN Investor

Higher economic growth and strong capitalization support stable outlook

Our outlook for Malaysia's banking system remains stable, supported by higher economic growth and banks' strong capitalization. Robust domestic demand will continue to drive growth amid healthy employment conditions. Malaysian banks' asset quality and profitability will remain stable, and we expect capitalization to remain strong. While Malaysian banks are more susceptible to changes in liquidity conditions due to greater use of market funds, the banks have access to liquidity from the central bank when required. We also expect loan growth....

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