Kuala Lumpur (VNA) – Malaysia, with 62.7% of Asia-Pacific’s total Islamic banking assets, continues to be the largest Islamic banking market in the region; and is likely to maintain its position in the next two years, according to S&P Global Ratings.
As reported by the Malaysian national news agency Bernama, the rating agency said Islamic financing in Southeast Asia is expected to grow by 8% over the next two years, with Malaysia retaining its dominant market position.
“Islamic banks in core markets of Malaysia and Indonesia have healthy capitalisation and stable retail deposit bases,” it said in a report on the Asia-Pacific Islamic banking sector.
On growth drivers for the region, it said they include the proposed merger of Malaysia Building Society Bhd and Malaysian Industrial Development Finance Bhd, which will create a full-service Islamic bank in Malaysia, as well as increasing digitalisation of banking services in the region.
S&P Global forecast that Malaysian Islamic banks’ share of Islamic financing in Southeast Asia will increase to 45% by 2026. It said profitability for Malaysian Islamic banks is expected to stay flat in 2023.
The rating firm also said Malaysia’s Islamic banks are leading the way on environmental, social and governance (ESG) practice./.
As reported by the Malaysian national news agency Bernama, the rating agency said Islamic financing in Southeast Asia is expected to grow by 8% over the next two years, with Malaysia retaining its dominant market position.
“Islamic banks in core markets of Malaysia and Indonesia have healthy capitalisation and stable retail deposit bases,” it said in a report on the Asia-Pacific Islamic banking sector.
On growth drivers for the region, it said they include the proposed merger of Malaysia Building Society Bhd and Malaysian Industrial Development Finance Bhd, which will create a full-service Islamic bank in Malaysia, as well as increasing digitalisation of banking services in the region.
S&P Global forecast that Malaysian Islamic banks’ share of Islamic financing in Southeast Asia will increase to 45% by 2026. It said profitability for Malaysian Islamic banks is expected to stay flat in 2023.
The rating firm also said Malaysia’s Islamic banks are leading the way on environmental, social and governance (ESG) practice./.
VNA
