KUALA LUMPUR: The impact of the recent United States (US) and Swiss banking sector stress on Malaysia banks has been minimal, said Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus.
Nor Shamsiah said banks in Malaysia had limited exposures to the troubled US and Swiss banks as the depositor base of Malaysia banks was more diversified.
"Our banks are still resilient and we do not expect what we see (happening) in other countries to happen here in Malaysia," she said at the press conference of Bank Negara's Annual Report 2022, Economic and Monetary Review 2022 and Financial Stability Review for Second Half 2022.
In terms of the impact of the mark-to-market losses due to rising interest rates on the bond holdings of banks in Malaysia, Nor Shamsiah said this remained well within the internal capital targets of banks.
"Banks also continued to hold high levels of high-quality liquid assets (HQLA) in the form of placements with Bank Negara and government bonds that can be pledged with the bank to meet any additional liquidity needs," she said.
Despite a challenging operating environment, Nor Shamsiah said the Malaysia banking system remained resilient, with healthy levels of capital and liquidity buffers.
She said the total capital ratio stood at 18.8 per cent as at December 2022, notably higher than the level observed during the global financial crisis.
"The liquidity coverage ratio and net stable funding ratio also remained steady at 154 per cent and 118 per cent, respectively," she said
Meanwhile, Nor Shamsiah said Bank Negara also tested the resilience of Malaysian banks and insurance companies through its annual stress test exercise.
"The banks and insurers and takaful operators (ITOs) are subjected to operating environment scenarios that are more severe than that observed during the global financial crisis and 2020 pandemic.
"The stress test results reaffirm that our banks are sound, with the total capital ratio remaining well above the minimum requirement of 8 per cent under adverse scenarios,"
she added.
Disclaimer: Perpustakaan Tun Abdul Razak,UiTM This material may be protected under Malaysia Copyright Act which governs the making of photocopies, reproductions or copyrighted materials. You may use the digitized materials for study or research
