The banking system remained well-capitalised throughout the second half of 2022 (2H 2022), bolstering the bank’s capacity to support lending activity and absorb unexpected losses.

Bank Negara Malaysia (BNM) in its Financial Stability Review for the 2H 2022 said the banking system’s total capital ratio remained strong at 18.8 percent in December 2022 compared to 18.4 percent in June 2022, with capital buffers of RM134.8 billion in excess of the regulatory minimum.

“Improvements in profitability will provide further...