Malaysia Banking – 2H21 Financial Stability Review | POSITIVE
The banking system remains stable and resilient, especially amid economic recovery. BNM nevertheless highlights that the recovery is uneven and a few sectors continued to warrant monitoring. It also highlights the risk of higher mark-to-market losses on investments should bond yields rise. This, however, is not unexpected and has somewhat been factored into our forecasts. We maintain sector POSITIVE with BUYs on HLBK, AMMB, RHB, ABMB, HLFG and BIMB.