Islamic Banking Across South and Southeast Asia to Grow Amidst Robust Liquidity and Capitalisation: Moody’s

Coming out of the COVID-19 pandemic, the Islamic banking industry is expected to witness growth in economies across South and Southeast Asia as demand for financing increases, according to Moody’s Investors Service (Moody’s). Despite weakened profitability in 2020, Islamic banks across South and Southeast Asia have strong capital and liquidity to be able to meet the said demand, according to Moody’s.

Why it matters?

Islamic banking forms a part of a Halal ecosystem that governments across South and Southeast Asia are keen to create in order to boost economic development. Islamic banking plays a vital role in increasing financial inclusion and is also significant due to its alignment with environmental, social and governance (ESG) princ...