Malaysia’s Islamic Banks' Credit Profiles to Remain Stable in 2022 Sustained by Economic Recovery: Fitch

The credit profiles of Malaysia’s Islamic banks are expected to remain stable in 2022 as economic recovery in the country continues to sustain the growth of the Islamic banking sector, according to the American credit rating agency, Fitch Ratings (Fitch).

Why it Matters?

The country’s Islamic banking sector is set to continue seeing support in 2022, prompted by high public demand for Islamic products and government and regulatory support. Islamic banks' capital levels are to remain steady on the back of profitability recovery driven by normalising operating income and credit costs to pre-pandemic levels. Bashar Al-Natoor, Global Head of Islamic Finance at Fitch, affirmed that Malaysia sustains the largest outstanding Sukuk market globally as...