Domestic financial system remains resilient, says BNM

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Financial institutions’ strong liquidity buffers ensure resilience against future shocks, unexpected losses.

Malaysia’s banking system remains well-capitalised with capital buffers of RM138.5 billion in excess of the regulatory minimum, as of end-June 2023.

“This will enable them to continue to support the financing and protection needs of households and businesses,” BNM said in its Financial Stability Review First Half 2023 statement today. The aggregate capital adequacy ratio and excess capital buffers stood at 225% and RM38.8 billion, respectively, as of end June 2023.The central bank said despite continued heightened volatility in the global financial markets, domestic conditions “remain orderly”. This was reflected in the smooth intermediation of two-way flows in the bond and equity markets.

“Continued onshore FX market liquidity is enabling orderly adjustments to external developments, and that this will support businesses and market participants in managing their FX exposures and allocation of resources,” it added.

 

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