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Malaysian banks drive up capital buffer  

February 18, 2014
The Star

Malaysia's banking sector is on continuous drive to build capital buffer and resilience against external headwinds.

The recent circular to banks to set aside a minimum of 1.2% of total loans or collective assessment (CA) ratio by end of next year is a long-term step towards this aim.

Coming from all angles, the other measures include Basel III under which banks have to fortify their capital base.

At the moment, Malaysian banks are well-capitalised but credit growth among banks has been strong and this CA ratio requirement is a preemptive step against possible impairment losses.

Read more: The Star

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