BNM released recently its biannual Financial Stability Review for the first half of 2020.
Key summary of the report is as followings:
- Banks maintained healthy capital and liquidity positions despite increased pressure on earnings
- Debt-servicing capacity of households and businesses supported by debt relief measures, but some deterioration in asset quality expected
- Businesses: Weaker financials of firms with certain sectors facing a more challenging outlook
- Recent stress tests affirm resilience of the banking sector to an increase in credit losses under more adverse economic conditions
For your information there is also an article on Measures to Mitigate the Impact of COVID-19 and Preserve Financial Stability which indicates that financial institutions remains supportive of the economy while ensuring the pandemic does not evolve into a financial crisis.
The full report may be accessed at BNM Financial Stability Review for First Half 2020: https://www.bnm.gov.my/index.php?ch=en_publication&pg=en_fsr&ac=35&en
