KUALA LUMPUR, March 14 (Bernama) -- The outlook for domestic financial stability is expected to remain intact this year, said the Financial Stability Committee (FSC) of Bank Negara Malaysia (BNM).
The FSC assessed at a meeting last Friday that stability continued to be preserved and well-supported by sound financial institutions and orderly domestic financial markets.
In a statement here today, the FSC said, the multi-year solvency stress tests it conducted affirmed the strong capacity of Malaysian banks, insurers and takaful operators to withstand simulated macroeconomic and financial stresses.
"Overall capitalisation is expected to remain above the regulatory minimum under severe credit, market and insurance-specific shocks that are comparable to past domestic and global crises experience.
"This reflects the continued strengthening of balance sheets of households and businesses amid stronger economic conditions," the committee said.....