KUALA LUMPUR: Malaysia’s commercial banking assets in 2024 reached RM3.61 trillion, nearly eight times more than the figure in 1998, after the Asian Financial Crisis.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that this was the result of an industry that prioritised stability by implementing reforms, sound regulation, and prudent risk management, which was amplified especially after the 2008 global financial crisis.
“The resolution framework was also strengthened, enabling institutions like PIDM to manage distressed institutions while preserving public confidence, without resorting to bailouts.
“Today, our financial system is more resilient than ever, with commercial banking assets reaching RM3.61 trillion in 2024, nearly eight times the size recorded in 1998,” he said, here, today.
Nonetheless, as Asean nations grow to integrate with each other, he urged the bloc to collaborate in strengthening financial stability in the region.
Citing a research paper by the Asean+3 Macroeconomic Research Office (AMRO), he said that there was a surge in intra-regional cross-border financial intermediation, which raised both systemic and contagion risks.
“Our regional crisis-response capabilities must continue to advance through stronger collaboration, coordination, and communication.
“I am pleased to see fellow regional deposit insurers and resolution authorities are gathered here to discuss ways to strengthen Asean’s financial resilience in these times,” he said at the Perbadanan Insurans Deposit Malaysia (PIDM) symposium themed ‘Precaution Over Reaction: Harvesting Readiness in an Uncertain World’.
He said that PIDM must continue to champion for resolution readiness to prevent a repeat of international incidents which had occurred at the Silicon Valley Bank and Credit Suisse.
“This is why resolution readiness, championed by PIDM, must remain a non-negotiable priority embedded in governance, strategy and institutional culture,” he said.
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