KUALA LUMPUR, June 29 (Bernama) -- Moody's Investors Service rating downgrade of major international banks will benefit Malaysian banks, says Datuk Seri Abdul Wahid Omar, Malayan Banking Bhd President and Chief Executive Officer.
He said it would enable more liquidity to flow into Asian banks and result in cheaper cost of funds in Asia.
Abdul Wahid said prior to the downgrade, highly-rated banks from Europe and America had sometimes asked for collateral for transactions with Asian banks.
"As the rating was now quite close between Asian and Western banks, Asian banks were now able to deal with them at par," he told reporters after Maybank Overseas Scholarship Award Ceremony.
He also said the financial standing of Asian banks have improved in line with the enhanced sovereign ratings of Asian countries.
Moody's Investors Service had earlier said Malaysia's A3 sovereign rating was stable and pegged the bank's long-term deposits rating at A3.
"Banks in Malaysia has benefited from the country's good economic management and well regulated banking system," he added.