Moody’s: Strong demand for Islamic finance to partially offset impact of industry challenges | Malay Mail

KUALA LUMPUR, Sept 20 — Strong demand for Islamic finance, which is growing faster than conventional banking, will partially offset the impact from the challenges being faced by the industry, said Moody’s Investors Service.

Islamic banks’ profits are being hit by low interest rates, a still-subdued operating environment, and high provisioning costs, the rating agency said in a report. It noted that Islamic banks in Gulf Cooperation Council countries and South and South-east Asia are focusing on low-risk retail finance, which will help protect their asset quality amid an uneven economic recovery across these regions.

“Regulatory forbearance has masked the deterioration in the banks’ loan books, and high provisioning costs will continue to weigh on profitability, but their capital and liquidity buffers should comfortably absorb unexpected losses,” said Moody’s analyst Badis Shubailat.“Their liquidity is also strong, reflecting deposit growth as customers cut spending amid economic uncertainty.

“We expect more Islamic banks to pursue mergers, particularly smaller players crowded out by large competitors,” he said. “In the GCC region, Islamic banks have in some cases merged with conventional peers. In Indonesia, the government merged its state-owned Islamic banks in 2020 to help them compete with larger conventional banks.” — Bernama

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

British food industry demands government action over CO2 shortage | Malay MailLONDON, Sept 18 — Britain’s food industry called on the government to subsidise carbon dioxide (CO2) production during a spike in gas prices or risk the collapse of the country’s meat industries. A surge in gas prices has forced two British fertiliser plants to shut, stripping food producers...
Источник: malaymail - 🏆 1. / 86 Прочитайте больше »

Moody's: Islamic banks' retail finance focus helps weather pandemicKUALA LUMPUR: Islamic banks in Gulf Cooperation Council (GCC) countries and South and Southeast Asia’s focus on low-risk retail finance, which will help protect their asset quality.
Источник: staronline - 🏆 4. / 75 Прочитайте больше »

Finance Ministry to study best method to stabilise chicken prices | The Malaysian InsightTengku Zafrul says pricing impact on all parties from industries to consumers will be evaluated.
Источник: msianinsight - 🏆 8. / 63 Прочитайте больше »