Malaysia's banks anticipate higher pre-tax profit

Malaysia's banking sector expects to boost its pre-tax profit to US$8.24 billion from US$7.58 billion last year, according to Bernama News.

RAM Rating Services Berhad head of financial institution ratings, Promod Dass, said this would be driven by domestic demand and the implementation of the Economic Transformation Plan projects.

"Our stable banking sector will continue with its strength," he said.

Promod said that the objectives are to sustain growth and ensure price stability, while keeping close on liquidity management and the potential build-up of asset bubbles. He added that the increase in statutory reserve requirement to two per cent was a step towards mopping up excess liquidity from banking system.

"It is also a signal of a tightening monetary stance based on inflationary expectations," he said.