Retail Banking in Malaysia - Coronavirus (COVID-19) Sector Impact

Retail Banking in Malaysia - Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with most of the countries across the world registering declines in their economic growth for the year to date. Many economists and institutions have cut their forecasts as a number of countries officially slipped into recession in Q1 2020.

Malaysia’s GDP has been revised downward for 2020 due to the economic disruption caused by Coronavirus. With the government now easing lockdown restrictions and allowing businesses to reopen in a phased manner, a rise in consumer and commercial spending is expected, which in turn will support the retail banking industry.

This report focuses on the impact of the coronavirus outbreak on the economy and the retail banking industry in Malaysia. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat coronavirus.

Scope

• Banks are experiencing a rise in the delinquency rate, resulting in higher non-performing loans as retail customers and small businesses are more vulnerable to disruption from COVID-19.
• To curb this issue and to protect both consumers’ and lenders’ interests, Malaysian banks are extending support to their customers. For instance, on March 20 United Overseas Bank announced a number of relief measures for both individual and business customers affected by coronavirus.
• These include the deferment of payments for up to six months on personal loans, mortgages, and credit cards.

Reasons to Buy

• Make strategic decisions using top-level revised forecast data on the Malaysian retail lending and deposit industry.
• Understand the key market trends, challenges, and opportunities in the Malaysian retail lending and deposit industry.
• Receive a comprehensive insight into the total consumer loans in Malaysia, including mortgages, personal and credit card loans as well as retail deposits balances.