Malaysia Says Banks on Solid Footing Amid Global Finance Woes

Bank Negara Malaysia said the country’s lenders have no direct exposure to the failed US banks and that the banking system remains well-capitalized.

(Bloomberg) — Bank Negara Malaysia said the country’s lenders have no direct exposure to the failed US banks and that the banking system remains well-capitalized.

“Any indirect exposure from counter-parties or borrowers with linkages to the US banks is also very limited,” BNM said in an emailed response to questions by Bloomberg News. All licensed banks in Malaysia must comply with “stringent capital and liquidity rules on an ongoing basis” to ensure banks can withstand “severe macroeconomic and financial shocks,” it said.

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The regulator’s remarks come in the wake of a mid-sized banking stress in the US earlier this week and followed by woes at Credit Suisse Group AG that are sending shock waves across the global financial system. 

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