Financial Sector Assessment : Malaysia
Malaysia, as many of its Asian neighbors, experienced significant macro/financial distress in the late 1990s. The transformed and strengthened financial sector has been able to weather the recent global financial crisis well. Financial market inter...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/03/17428461/malaysia-financial-sector-assessment http://hdl.handle.net/10986/15823 |
| Summary: | Malaysia, as many of its Asian
neighbors, experienced significant macro/financial distress
in the late 1990s. The transformed and strengthened
financial sector has been able to weather the recent global
financial crisis well. Financial market intermediaries
reliance on cross-border and interbank funding remains
limited. Banking institutions are well capitalized and are
expected to be able to meet Basel three capital requirements
comfortably by the 2019 implementation deadline. Asset
quality has improved significantly over the last 5 years and
banks are profitable, with low cost-to-income ratios
compared to regional peers. The authorities have taken steps
to monitor and mitigate the potential significant risks of
recent rapid loan growth. The regulatory and supervisory
regimes for banking, insurance and securities are well
developed and exhibit a high degree of compliance with
international standards. Government equity holdings in the
financial sector, both direct and indirect, are extensive.
Further development of the domestic Islamic financial system
presents both opportunities and challenges. |
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