Fitch Ratings Confident that Malaysia’s Islamic Banking Sector Will Continue Growth Path Despite COVID-19

Certain sectors in Malaysia, including Islamic banking, will continue on their growth trajectories in spite of the COVID-19 situation, according to Fitch Ratings (Fitch). This confidence from the ratings agency reiterates the Chartered Institute of Islamic Finance Professionals (CIIF)’s belief that banks that follow Shariah principles are foresighted and therefore better prepared for high-risk circumstances such as those arising from COVID-19.

Why it Matters?

Chief Executive Officer of the CIIF, Dr Azura Othman, said that the CIIF considers COVID-19 as an opportunity for the development of the Islamic banking industry and also a path through which Malaysia can contribute to nurturing talent in this field. Fitch also noted that in comparison to c...