COVID-19: Impact on Malaysian Financial Institutions and How to Respond
With the regulatory measures announced by BNM and statements issued by MASB and IFRS in response to the recent development of COVID-19, we explore its impact on Financial Institutions in Malaysia in terms of loan growth, earnings, provision, and liquidity.
The effects and aftermath of the COVID-19 pandemic will be felt for a long while, even after the MCO period ends. How can financial institutions prepare to weather the inevitable economy slowdown?
- Adjust the parameters to incorporate and consider the short term economic outlook
- Optimise the RWA and provision calculation process to be more effective
- Respond to customers earlier by leveraging on early warning signals
- Prepare a more robust business continuity plan with more recovery options, if similar crises were to occur in the future.