Research houses positive on banking sector despite Bank Negara nod for digital bank licences | Malay Mail

KUALA LUMPUR, May 5 — Research houses are positive on the banking sector following Bank Negara Malaysia's announcement of the five successful applicants of the digital bank licences as they are not expected to impact its strong growth.

CGS-CIMB Research reiterates overweight stance on banks as it expects the issuance of new digital banking licences to materially alter the competitive landscape of the banking sector over the next three to four years. It viewed that this would be negative for RHB Bank in the short term due to the potential operating losses over the next two to three years from its new digital bank but it expects the venture to be positive for the bank in the longer term when its digital bank turns profitable.

It said digital banks’ primary focus on the un-served and under-served segments may come at the expense of profitability, though it must be noted that they are also likely have greater cost advantages.

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank besar mampu hadapi persaingan bank digital, kata Moody’s | The Malaysian InsightBank digital tidak akan banyak jejas pasaran bank besar dalam tempoh empat hingga tujuh tahun, kata Moody's.
Source: msianinsight - 🏆 8. / 63 Read more »

India central bank announces surprise rate hikeNEW DELHI: India’s central bank raised a key interest rate on Wednesday, its first such rate hike in years, in a bid to control inflation in the count...
Source: theSundaily - 🏆 25. / 51 Read more »

Australian central bank raises rates for first time since 2010The Reserve Bank of Australia (RBA) raised the main lending rate by 25 basis points to 0.35%, the first increase since November 2010. theSun theSundaily business Australia
Source: theSundaily - 🏆 25. / 51 Read more »