Hawkish Fed Likely to Reshape Malaysia Banks' Outlook in 2H -- Market Talk

Dow Jones09:59

0159 GMT - Malaysia's banking sector outlook for 2H could be shaped by a more hawkish Fed as geopolitical risks ease following the latest U.S.-Iran de-escalation framework, CIMB Securities analyst Ei Leen Tan says in a note. While higher-for-longer interest rates could bring greater market volatility and tighter liquidity conditions, she thinks the risks are more market-related than credit-driven. Banks are expected to remain supported by resilient earnings, stable asset quality and strong capital positions, she adds. CIMB maintains an overweight rating on the Malaysian banking sector, pegging Public Bank, RHB Bank and Hong Leong Bank as top picks. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

June 23, 2026 21:59 ET (01:59 GMT)

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