KUALA LUMPUR (June 21): A combination of slower growth and higher leverage in Malaysia increases credit risks for the country's banks, according to S&P Global Rating.
In a report titled Malaysian Banks' Credit Profiles Remain Stable But Underlying Risks Linger released today, credit analyst Rujun Duan said Malaysia's economic expansion shifted to a lower gear two years ago, and the momentum has not returned.
"A weak energy sector, subdued global demand, and tightened domestic spending continue to drag on growth," said Duan.
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