WHILE banking stocks have so far acted negatively to the Finance Ministry’s (MoF) instruction to get banks working on exempting interest payments for moratorium borrowers, observers say it is too early to predict the exact impact on banks.
“We await the announced outcome and allow banks to distil the impact and/or provide some pushback,” CLSA banking analyst Peter Kong tells clients in a report.
Hong Leong Investment Bank (HLIB) analyst Chan Jit Hoong says he is making no change to his earnings forecasts for banks at the moment “till we gather more updates from banks.”
It is understood that the banks themselves are awaiting more instructions from Bank Negara on the matter.
On Tuesday, the MoF said in a statement that it had instructed banking institutions to quickly work on exemption of interest rate payments for rRead More »