BBF2134 Financial Markets and Institutions

Trimester 1, 2020/2021

INDIVIDUAL PROJECT
‘Effect of COVID-19 crisis on commercial bank in Malaysia’
Submission date: 05-10-2020

Lecturer: [Peong Kwee Kim]

Prepared by:
Student ID Student Name Phone number
1201301677 ER PEI QI 011-26678312

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1201301677
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Date 5/10/2020
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 Marking Scheme (50%)

Student’s Name: Er Pei Qi

Student’s ID: 1201301677
Section: BM02

INDIVIDUAL PROJECT (50%)

NO DESCRIPTION SCORE TOTAL
Very Weak Satisfactor Good Very
Weak y Good
1 2 4 5
3
1 Introduction (10%)
Each score = 2
points
2 Contents (a)-
(10%)
Each score = 2
points
3 Contents (b)-
(10%)
Each score = 2
points
4 Contents (c)-
(10%)
Each score = 2
points
5 Conclusion (5%)
Each score = 1 point
6 Reference- APA
Style (2.5%)
Each score = 0.5
points
7 APPENDIX (2.5%)
Each score = 0.5
points
Total Marks /50

Prepared by:
Date:

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Table of Contents
1.0 Introduction.....................................................................................................................................4

2.0 Contents...........................................................................................................................................5

2.1 What are the effects of COVID-19 on commercial banks in Malaysia?.......................................5

2.1.1 The cost of credit risk in banking industry increase..............................................................5

2.1.2 Net interest margin (NIM) shrinks........................................................................................6

2.1.3 Earnings of commercial banks are affected...........................................................................6

2.2 The innovative solutions and the ways that may tackle the issues and challenges facing during
COVID-19 to establish financial resilience.......................................................................................7

2.2.1 Provide loan repayment flexibility to borrowers of bank and reduce high cost of credit in
commercial bank............................................................................................................................7

2.2.2 Government lower the requirement of LCR and NSFR and drawdown capital buffer..........8

2.2.3 Accelerate digitalization and reconfigure improve customers use........................................8

2.3 Recommendation based on commercial bank relating to Post COVID-19 crisis.........................9

2.3.1 Must give priority to bank’s benefits while provided any assistance to the borrower...........9

2.3.2 Continue improve liquidity management and capital management.......................................9

2.3.3 Make sure the digital channels continue to accommodate the needs of all customers.........10

3.0 Conclusion.....................................................................................................................................11

4.0 References.....................................................................................................................................12

5.0 Appendix.......................................................................................................................................19

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1.0 Introduction
The objective of this project is to provide a look into the Malaysia’s commercial bank
current situation during COVID-19 crisis and this issue is declared as a pandemic by the
World Health Organization, causing huge impact on people's lives, families and communities
in global. WHO is working closely with experts, governments and partners around the world
to quickly enrich scientific knowledge about this new virus and track the spread and toxicity
of the virus. COVID-19 outbreak live updates every day in every countries and all individuals
take measures to protect health and prevent the spread of the epidemic. This issue will be the
unforgettable experience for every single person in whole world. Every country now has
same goal which is ensuring the country reaches right balance between health and economy
aspect and working hard to break the chain of infection. All of the countries hope can leave
completely and early with the collaboration of every individuals.

It is without a doubt that the COVID-19 situation has impacted global markets in
worldwide started from first reported case in humans in Wuhan, China last quarter of 2019.
After that every country had impacted by this virus. Since the unprecedented global spread of
the Covid-19 virus, banks in whole world have been hit harder than most industries. Financial
markets are in chaos. Banks’ performance on equity and debt markets in worldwide since the
COVID-19 outbreak and has faced a similar situation after the collapse of Lehman Brothers
in 2008. The large-scale continuous outbreak of this virus has become a serious threat with a
profound impact on the entire economy, financial institutions and financial markets. It is
expected that financial institutions and financial markets will collapse and a new global
recession may occur. This is an unprecedented challenge for our modern society and health
system. The impact of the pandemic on global economy and financial sectors is
unpredictable.

The massive spread of the virus also has affected in Malaysia also very serious during
March 2020 and Movement Control Order (MCO) has been announced on 18th March 2020
and further extend until 3rd May. Under MCO, everyone are locked down in home and
practice the social distance, wear face mask and maintain hygienic. Then, Conditional
Movement Control Order (CMCO) also introduce started from 4th and extended until 9th
June. Now, we are in Recovery Movement Control Order (RMCO) started from 10th June

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and will be extended until 31 December 2020. During CMCO, the economic sectors resume
operations as usual with strict Standard Operating Procedures (SOPs), except for the social,
education and sports. While during RMCO, all sectors are allowed to resume back but every
level must comply with SOPs.

2.0 Contents
2.1 What are the effects of COVID-19 on commercial banks in Malaysia?
2.1.1 The cost of credit risk in banking industry increase
Covid-19 pandemic have a negative impact on profitability and credit management of
Malaysia banking industry. According to Said and Goh (2020), the most common challenge
face by the Malaysia banking industry is to monitor the credit developments in their portfolio.
This situation happening because the income of individuals and businesses have been
affected by the pandemic. Therefore, Bank Negara Malaysia (BNM) and the Malaysian
financial industry are committed to assist individuals and viable businesses by announced
measure of six-month moratorium on all loan repayments, effective on 1 April 2020 and until
30 September 2020 to ease their monthly burden (Bank Negara Malaysia, 2020). The
outstanding balance of the credit card also can be converted into three-year loan with reduced
interest rates. (Ong & Chee, 2020).

Moreover, since the Movement Control Order (MCO) came into effect on March 18, the
economy this year is expected to contract due to the stagnation of business activities.
According to the Said and Goh (2020), Dr Yeah Kim Leng said that “As social and business
activities are shut down and movements restricted to contain the virus spread, the loss of
business income and retrenchments are expected to contribute to the rise in loan defaults.”
This is because over-leveraged companies or individuals cannot continue to repay their debts
due to continuous business losses and layoffs even if the moratorium has ended. For example,
the businesses will still struggle because the households are no longer spending and this cause
more businesses start to fail and may face default notices for non-payment of loan, leases,
rent and so on. These are the evidences show the increasingly credit risk of bank industry.
Then, increase in credit costs will affect profitability of banks and cause deterioration of asset
quality. Furthermore, Based on Borneo Post (2020), due to the 2019 coronavirus disease
outbreak and other long-term uncertainties, loan growth in the Malaysia’s banking industry is
expected to remain sluggish while asset quality may weaken. Jessica Chow, Deputy Governor
of Bank Negara Malaysia, said: "In this environment, we should expect non-performing loans

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(NPLs) to increase because some companies will continue to face difficulties." Latorre et al.
(2020) stated that the NPLs and deterioration in asset quality of banks will increase because
some stressful industries like hotels, restaurants, tourism unable to repay loan and debt. The
increase in NPLs will overtake loan growth in Malaysia bank industry, including commercial
bank. For example, Maybank expects loan growth to remain silent in the second half of 2020
(Malay Mail, 2020)

2.1.2 Net interest margin (NIM) shrinks

According to Aman (2020), net interest margin NIM will contract with most banks in 2020 as
the Bank Negara lowered the policy rate and led to a decline in lending rates due to the
COVID-19 pandemic and MCO. NIM is a profitability indicator of financial stability of
investment firms or banks. Only the higher NIM would increase the profitability of the banks
and negative NIM means that the banks have been unable to make full use of its assets now
because the interest income generated by the investment failed to pay the interest expense. In
overall, if the non-performing assets (NPAs) rise, the interest earned by bank would fall. On
the other hands, MIDF Research stated that the contraction of the NIM is due to the impact of
interest rate cuts. Next, NIM also may be weakened based on other factors including the
relaxation of regulatory requirements like Net Stable Funding Ratio (NSFR) and Liquidity
Coverage Ratio (LCR) which mean there is less demand for banks to compete for deposits
during the epidemic. In addition, depositors may be unwilling to lock up their deposits for a
long time (Muhammed, 2020). NIM compression is because the continuous cuts in overnight
policy rate (OPR) which lowered by Malaysia central bank and it also may reduce the bank’s
net profit.

In addition, Muhammed (2020) had indicated that the impact of the Covid-19 pandemic on
the global economy is serious and economic activity in Malaysia shrank sharply in the second
quarter due to measures taken to curb economic growth on 8 July in The Edge Markets. So,
to help businesses and households reduce their monthly loan obligations, Bank Negara has
cut the another 25 basis points of OPR which shows in Monetary Policy Statement on 10 Sep
2020 and decided to maintain the OPR at 1.75 percent, the lowest level record since 2004.
Besides, there is a total of 125 basis points reduction of the OPR in this year. Lower OPR
means lower interest margins of bank loans and continue to stimulate the economy in this
year. Then, the Bank Negara (2020) will continue to work hard to use its appropriate policies
to create favorable conditions for a sustainable economic recovery.

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2.1.3 Earnings of commercial banks are affected
As expected, the earning of most banks fell sharply in the April to June quarter, which was
affected by the COVID-19 pandemic and full impact of the MCO as well as hurt by the new
measures by Bank Negara, OPR cut causes the interest rate to fall (Raj, 2020). For instance,
CIMB Group Holdings Bhd reported that its net profit for the second quarter ended June 30,
2020 fell 82% to RM277.08 million from RM1.51 billion a year ago. This is due to the
challenging economic crisis and modification loss due new measures taken by central bank.
Public Bank, RHB Bank and Hong Leong Bank also performed poor earnings mainly due to
the modification loss (Lim, 2020). Besides, according to Sunbiz (2020), the net profit of
Public Bank Limited in the second quarter ended June 30, 2020, fell by 24.8% to RM1 billion
from RM1.33 billion a year ago. This was mainly due to the one-off net profit related to
Covid-19 relief measures. Besides, Malayan Banking Bhd’s net profit fell 51.5% to 274.73
million ringgits from last year’s 1.94 billion ringgits. Therefore, Bank Negara Malaysia
which further reduced the OPR will greatly affect the bank's NIM and its earnings in the
second half of 2020 (Jalil, 2020).

2.2 The innovative solutions and the ways that may tackle the issues and challenges
facing during COVID-19 to establish financial resilience.
2.2.1 Provide loan repayment flexibility to borrowers of bank and reduce high cost of
credit in commercial bank.
The most common problems faced by borrowers during this period are lost their jobs in 2020
and suffered from a drop in income due to the COVID-19 pandemic (Malaysia Kini, 2020).
Most of the individual borrowers unable to repay the loan and pay the debt due to the
financial constraints and this had caused the cost of credit risk of commercial bank increase.
So, to ease the burden of individual borrowers, Bank Negara provide loan repayment
flexibility to borrowers which is called restructure & reschedule (R&R) for their loans. This
measure is mainly for individuals who have lost their jobs by 2020 but have not found a job.
Then, for the individuals who are still working but whose salary has been affected by
COVID-19 will be reduced in installments according to the type of loan and the proportion of
their salary reduction. For example, Mr. Muhyiddin stated that “For a house or personal loan,
the monthly payment will decrease at the same rate as your salary reduction. This assistance
must last at least six months (Tan, 2020).” Besides, the problems faced by the corporate
borrowers also similar with individual borrowers. They also face difficulties in loan
repayment and cash flow issues arising from the COVID-19 pandemic. These problems are

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adversely affected the operation’s companies or enterprises of corporate borrowers like
liquidity, capital and may cause salary cuts, layoffs, unpaid leaves, bankruptcy, cut into
shareholder profits and so on. Of course, the bank also promised to provide other individuals
and all corporate and SME borrowers with repayment flexibility once the six months loan
moratorium expires. The repayment flexibility provided by each bank will take into account
the specific circumstances of the borrower. This includes: Allow the borrower to pay only the
interest part of the loan for a period of time; Extend the total loan term to reduce monthly
installments; or Provide other forms of flexibility until the borrower is in a more stable state
to repay the repayment in full. All other capable borrowers should start repayment as this will
reduce their total debt and borrowing costs based on Bank Negara Malaysia website 2020.

2.2.2 Government lower the requirement of LCR and NSFR and drawdown capital
buffer
To resist the challenges of economic downturn due to the COVID-19 pandemic. Bank Negara
Malaysia had announced some new measures like the loan moratorium. However, these
measure will be negatively to the banking sector in the near future because banks may face
liquidity tightening, cash inflow will be greatly reduced and liquidity will be exhausted in the
money market and put pressure on bank’s working capital because banks also need to support
their own operations like pay interest expenses, overheads and loan activities (Kaur, 2020).
During this event, financial institutions may find themselves struggling to meet Liquidity
Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). So, Bank Negara had
announced a new measures in 2020 which is supplied daily ringgit liquidity to banks and
allowed banks to operate below the minimum requirement LCR of 100% and lower NSFR to
80% (Ong & Chee, 2020). This is the way announced by Bank Negara Malaysia to tackle the
issue and challenge in liquidity. According to G. Kaur (2020), RHB Bank stated that it has
sufficient liquidity to manage the cash flow used by its individuals and SMEs to repay loans
during the loan moratorium. For instance, it lowers its LCR but it must not be less than 100%
compared to last year which stood at stood at 152.7% and follow the measures set by Bank
Negara and it maintains NSFR slightly above 100% (The Star, 2020). Then, based on Kong
(2020), Hong Leong Bank's liquidity is about 85% and its LCR exceeds 130%, can survive a
period of significant liquidity stress in current environment. Besides, Bank Negara also had
announced that banks may drawdown on the capital conservation buffer of 2.5% to
accommodate credit expansion. Chen, an analyst states that although the bank's cash flow

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will be temporarily affected but the reduction of capital buffer funds can help maintain bank’s
business operations.

2.2.3 Accelerate digitalization and reconfigure improve customers use

In this difficult time, the banks must continue to focus on customer needs to help them
recover from the effects of COVID-19 and MCO. Many bank employees have succeeded in
working from home during the lockdown period and technology can sustain key business
activities from transactions to financial advisory services (Young, 2020). The country
recognizes the trend in Fintech and understands the efficiencies that digitization can provide
for business operations and public delivery services through automation and big data (Times,
2020). For example, Public Bank has launched PBe QR to make it easier for merchants to get
payments from their customers which means public can make payments from any
participating banks or e-wallet mobile applications while merchants would only need to
display the DuitNow QR (Salim, 2020). Hong Leong Bank also helps all companies such as
SMEs and micro-traders to improve their digitalization and adopt cashless methods for
increasing flexibility, restore and eventually develop its business and almost 80% of HLB
customers regularly use the bank’s mobile banking application, HLB Connect as of May
2020. Besides, Maybank’s mobile app is using biometric technology which can immediately
contact financial advisors and enable bank consumers to have a comprehensive understanding
of their financial, investment and buying habits (News, 2020). The digitalization is the key
for commercial banks to drive forward momentum and expand its shares like shares in HLB
had risen about 0.14% (Salim, 2020).

2.3 Recommendation based on commercial bank relating to Post COVID-19 crisis.

2.3.1 Must give priority to bank’s benefits while provided any assistance to the
borrower
Based on The Star (2020), with the expiry of the loan moratorium period, individuals and
companies facing difficulties in repayment can still seek help from the banks. Banks would
still assist affected borrowers and businesses to reschedule and restructure their loans which
involve hire purchase loans, mortgage and business loans For instance, Public Bank will
provide flexible arrangements to reduce loan instalments until end of 2021, start from
October 2020 (Tan, 2020). However, the increase of credit risk of bank due to the NPLs and
higher impairments still cannot be avoided and it may affect the bank’s asset quality and
earnings in the context of a compressed NIM, slower loan growth and weak bank capital
market activity. R&R also may hurt borrower’s credit score and the business may be declared

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bankrupt when the restructuring plan is not approved. Therefore, banks must more agile in
credit monitoring and evaluation to avoid any cost of credit risk and go deeper into borrower
financials model to estimate resilience to crisis effects. Bank can develop a customer
treatment strategies. For instance, banks require long term strategic management such as
provide suitable services to every single community and customer based on their condition,
emphasize their benefits and transformation is necessary (Warren, 2020).

2.3.2 Continue improve liquidity management and capital management

According to Yusof (2020), OPR cut will hurt the bank's NIM. Besides, the moratorium
extensions and targeted assistance may also bring modification losses. So, in this low yield
environment, Bank Negara has lowered the requirement of LCR and NSFR and drawdown
capital buffer. Besides, all banks will need to reassess the way they hold liquidity to ensure
success during and after the pandemic. Bank Negara also use the Statutory Reserve
Requirement (SRR) to maintain the liquidity of the banking system. For example, reduce
SRR from 3% to 2% from March 2020 (Phillip Mutual Berhad, 2020). So, the bank has
sufficient liquidity system during crisis. However, the moratorium will affect banks cash flow
and most of the banks liquidate some of its bond holdings to meet cash flow in short-term
demand. Before economic activity improves, maintaining liquidity can act as a bridge and
systematic risk management strategies can make this process possible. For example, bank
may strengthen liquidity monitoring and revised cash flow forecast and liquidity model
assumptions in order to have enough liquidity to withstand the operation and able to fulfill
the needs of society after pandemic. Then, efficient capital management also important in
minimizing insolvency risk, every bank must ensure it meet debts obligation and pay on time
with high quality and sufficient liquid assets in order to improve the performance of bank’s
earning in every new financial year.

2.3.3 Make sure the digital channels continue to accommodate the needs of all
customers
Mr. Domenic Fuda, director of Hong Leong Bank said that "We continue to invest in building
customer-focused digital solutions across all customer segments that will further facilitate
frictionless banking, 24X7, without the need to have to visit a branch or fill in paper forms,"
(Salim, 2020). Transformation into advance technology banking services and digital adoption
also will help commercial banks to reduce operating costs and optimize user experience.
Then, there will be up to five digital banking licenses being issued by Bank Negara Malaysia
in 2021, to let more Malaysians and firms easier access to banking services and products. It is

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also hoped that customer experience will be revolutionized and that the financial services
market in Malaysia will be modernized (News, 2020). Besides, to support a stronger recovery
in Post COVID-19, Malaysia commercial banks should serve customers better with more
relevant products and services; adapting to new ways of working; and building more resilient
and agile organizations (Young, 2020) to maximize the number of customers. Expanding on
customer bases have resulted in an increase in fee income of bank. Except for continuing
optimize the online payment system, Banks can introduce Artificial Intelligence (AI) and
Robotics which already introduce in Bank of America and Tokyo to automate many labor-
intensive tasks in the financial sector such as mortgage approval, processing credit card
orders, cleansing accounts and cost accounting. However, all banks must be careful with
cyber risks and protect the customer’s details and privacy through strong cyber security risk
management.

3.0 Conclusion
In a nut shell, this project has discussed the effects of COVID-19 on Malaysia
commercial bank, identified the innovative solutions and ways that may tackle the issues and
challenges facing during COVID-19 to establish financial resilience in Malaysia and
suggested the recommendations based on the Malaysia commercial bank relating to Post
COVID-19crisis. This, project shows that this crisis has caused the bank earnings decline and
increase in credit risk between bank and customer which will lead to the NPLs and
deterioration of asset quality. So, to help the individual and business, Ministry of finance had
announced economy recovery plan like six month loan moratorium, PRIHATIN Economic
Stimulus Package which include loan cut in OPR. Besides, commercial banks have also
launched a package of aid packages including aid packages, which include emergency loans
to support SMEs and the flexibility to repay existing loans in addition to lowering policy
interest rates.

However, the measure of cutting OPR has caused NIM to contract which had caused
negative impact to commercial bank because NIM is significant indicator of financial
stability of bank. Therefore, another measure had introduce by government which is lower
the requirement of LCR and NSFR and drawdown capital buffer to ensure the liquidity level
and cash flow of bank can face the challenges from COVID-19. Besides, in Pre-COVID-19,
digitalization in bank is already launched in Malaysia. So, the use of online banking, e-

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payment system through mobile device or other are a lots during MCO. The advancement of
banking product and services has help commercial bank to generate revenue and increase the
shares during this particular time. Apart from that, the most common challenges are income
pressures and low profit margins, stricter regulation and increased competition from shadow
banking and new digital entrants (Carletti et al., 2020). Therefore, bank should increase the
supply of talent who are highly skilled in innovation and technologies because with more
digital banking and AI in future, bank must retain well positioned and maintain the
competitive advantage in global.

Finally, government also introduces other measures for economic such as PENJANA,
Asia-Pacific Economic Cooperation summit and Malaysia Proposed Post-COVID-19
ASEAN Economy Recovery Plan. However, the recent news shows that our country’s
pandemic become serious again. Health director-general Tan Sri Dr Noor Hisham Abdullah
said that “Malaysia is expected to enter the third wave of Covid-19 in line with the increasing
number of cases recorded worldwide recently.”(Malay Mail, 2020). He advised every single
individual in the country must comply to the SOPs strictly and stay at home if not emergency
things.

4.0 References
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Covid-19 | New Straits Times. NST Online.
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growing-pressure-covid-19
 Banks in strong position to meet new funding rules, says CIMB Research | The Star.
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position-to-meet-new-funding-rules-says-cimb-research
 Banks to provide repayment flexibility to borrowers/customers affected by COVID-19.
(2020, August 4). Malaysiakini. https://m.malaysiakini.com/announcement/537275
 Bernama. (2020, April 25). Economic recovery plan in the works | New Straits Times.
NST Online. https://www.nst.com.my/news/nation/2020/04/587288/economic-
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 Borneo Post. (2020a, March 15). Banks’ loan growth, asset quality affected by Covid-
19. Borneo Post Online. https://www.theborneopost.com/2020/03/16/banks-loan-

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 growth-asset-quality-affected-by-covid-19/
 Burns, P., Jenkins, I., Griggs, P., Eckes, B., & Eldridge, A. (2020). Beyond COVID-
19: Five key priorities to accelerate post-crisis transformation for banking and
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model in the post-Covid-19 world. VoxEU.Org. https://voxeu.org/article/bank-
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after-the-covid-19-crisis

 Carstens, A. (2020). Supervisory priorities in the age of Covid and beyond.

Www.Bis.Org. https://www.bis.org/speeches/sp200929.htm
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(2020, October 2). Www.Malaymail.Com.
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expected-to-enter-third-wave-of-covid-19/1908979
 FintchRatings. (2020b). Coronavirus DM Bank Buffer Breaches May Not Trigger
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https://www.fitchratings.com/research/banks/coronavirus-dm-bank-buffer-breaches-
may-not-trigger-downgrade-24-04-2020
 Fintech News Malaysia. (2020a, September 9). Hong Leong Rolls Out Smartphone
Payment Terminals Powered by PayNet & Soft Space. Fintech News Malaysia.
https://fintechnews.my/24811/banking/hong-leong-rolls-out-smartphone-payment-

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 terminals-powered-by-paynet-soft-space/
 Flanders Investment & Trade. (2020). CORONA VIRUS – The situation in Malaysia |
Flanders Trade. Www.Flandersinvestmentandtrade.Com.
https://www.flandersinvestmentandtrade.com/export/nieuws/corona-virus-
%E2%80%93-situation-malaysia
 Goh, J., & Lee, E. (2020, May 3). Malaysia’s banking system can handle Covid-19
challenges, says BNM deputy governor. The Edge Markets.
https://www.theedgemarkets.com/article/malaysias-banking-system-can-handle-
covid19-challenges-says-bnm-deputy-governor#Expect%20NPLs%20to%20rise
 Gwynne, S., O’Kelly, R., Sommer, M., & Dedeaga, C. (2020, March 26). Five
Actions For Corporate Banks In Response To Covid-19. Www.Oliverwyman.Com.
https://www.oliverwyman.com/our-expertise/insights/2020/mar/covid-19-corporate-
banking.html
 Hong Leong Bank. (2017). Hong Leong Bank New Mobile Banking App. Hong Leong
Bank. https://www.hlb.com.my/zh_cn/personal-banking/news-updates/hong-leong-
new-mobile-banking-app.html

 Jalil, A. (2020, September 7). Another OPR cut will hit banks’ earnings further. The
Malaysian Reserve. https://themalaysianreserve.com/2020/09/07/another-opr-cut-will-
hit-banks-earnings-further/
 Kamel, H. (2020, September 23). Bank Muamalat cuts loan growth target to 7%. The
Malaysian Reserve. https://themalaysianreserve.com/2020/09/23/bank-muamalat-
cuts-loan-growth-target-to-7/
 Kaur, D. (2020, March 27). Moratorium on debt repayment a bane for banks. The
Malaysian Reserve. https://themalaysianreserve.com/2020/03/27/moratorium-on-debt-
repayment-a-bane-for-banks/
 Kaur, G. (2020, April 1). RHB Bank: Sufficient liquidity, missed KPIs | The Star.
Www.Thestar.Com.My. https://www.thestar.com.my/business/business-
news/2020/04/01/rhb-bank-sufficient-liquidity-missed-kpis
 Kleinnijenhuis, A., Kodres, L., & Wetzer, T. (2020, June 30). Usable bank capital.
VoxEU.Org. https://voxeu.org/article/usable-bank-capital
 Kong, S. (2020, May 4). Hong Leong Bank’s cash forgone from loan moratorium will
be immaterial. Borneo Post Online.

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 https://www.theborneopost.com/2020/05/05/hong-leong-banks-cash-forgone-from-
loan-moratorium-will-be-immaterial/
 Koulouridi, E., Kumar, S., Nario, L., Pepanides, T., & Vettori, M. (2020, July 31).
Credit risk after COVID-19 | McKinsey. Www.Mckinsey.Com.
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resiliency-may-weaken-analysts

5.0 Appendix

19
Source: The World

Source: Finovate

Source: Public Bank Berhad

20
Source: Maybank2u Source: Hong Leong

21