Malaysia

Maybank Islamic is targeting US$566.7 million in deposits from its launch of two new financial products, within one year. The products are Foreign Currency Mudharabah-i or FCM-i, the first such product in Malaysia, and the Profit Now Account-i or PNA-i.

Maybank recorded a net profit attributable to shareholders of US$512.89 million for the nine months ending 31 March 2009. Its net profit for the same period last year was US$631.9 million.

Moody's warns that credit stress among Malaysian banks could increase if unemployment rises and recession sets in for a protracted period. But since credit stress in the Malaysian banking system has been muted, Moody's noted that its review deposit and debt ratings of nine Malaysian banks is unlikely to lead to more than one notch change.Moody's will review the specific circumstances of Malaysia to determine the appropriate systemic support for Malaysian bank ratings and the implications for the nine banks that have been identified as being potentially affected.Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities.According to Moody's the Malaysian government has implemented a number of pre-emptive measures to ensure the stability of the Malaysian banking system during the global crisis. This includes the provision of a blanket guarantee until December 2010 to all local and foreign currency deposits with all domestic and locally incorporated foreign banking institutions.Furthermore, Moody's also finds the government to be proactive in supporting the banking system in the current economic downturn by introducing several guarantee schemes to share the credit risk of banks when they extend loans to selective sectors and small- and medium-sized enterprises.The banks whose deposit and debt ratings were placed by Moody's on review for possible downgrade are AmBank (M) Berhad, CIMB Bank Berhad, CIMB Investment Bank Berhad, EON Bank Berhad, Hong Leong Bank Berhad, HSBC Bank Malaysia Berhad, Malayan Banking Berhad, Public Bank Berhad, and RHB Bank Berhad."The review of their debt and deposit ratings will look at the extent to which Malaysia's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Christine Kuo, a Moody's Vice President and Senior Analyst.At present the deposit and debt ratings of the nine banks on review receive between one to five notches of systemic support.

Hong Leong Islamic Bank posted a net profit after tax of US$15.473 million, up 15 percent year on year.

Hong Leong Bank Berhad net profit after tax for the nine months ending 31 March 2009 improved by 16 percent year-on-year to US$198 million.

HSBC Amanah Malaysia has expanded branches within six months with the opening of its Shah Alam branch.

Communities around Petaling Street are getting richer, and Hong Leong Bank intends to corner this market.

Seriously. And for a bit more you can buy names, credit card details and even handphone numbers of senior business people, all stolen by bank employees and sold on the black market.

Maybank became one of the best capitalised banks in Asia following the successful completion of its rights issue exercise on shares of Bursa Malaysia.

Malaysia is set to overtake Singapore with the granting of an additional five licences to foreign banks by 2012 bringing the total to 18 compared to Singapore’s six Qualifying Full Banks.

Goldman Sachs Islamic Bank, anyone? It may seem the most unlikely of partners, but new banking liberalisation laws in Malaysia will let foreigners own up to 70 percent of an Islamic bank, up from 49 percent.

It may seem the most unlikely of partners, but new banking liberalisation laws in Malaysia will let foreigners own up to 70 percent of an Islamic bank, up from 49 percent. Goldman Sachs Islamic Bank, anyone?

The Employees Provident Fund has raised its stake in local banking stocks Alliance Financial Group Bhd, AMMB Holdings Bhd, Bumiputra-Commerce Holdings Bhd (BCHB), EON Capital Bhd, Malayan Banking Bhd, Public Bank Bhd and RHB Capital Bhd.

Affin Bank, Alliance Bank Malaysia and OCBC Bank have beefed up its risk management systems.

Bank Rakyat is prepared to extend the loan repayment period of borrowers who have been retrenched. The bank's objective is to ease borrowers' financial burden in these difficult times, but borrowers who have been laid off must make a written appeal, said Managing Director Datuk Kamarulzaman Che Mat.

HSBC Amanah Malaysia Berhad opened its third branch in Ampang Point, Selangor. The opening was officiated by Irene Dorner, Chairman of HSBC Amanah Malaysia, and Musa Abdul Malek, Chief Executive Officer of HSBC Amanah Malaysia.