PETALING JAYA: The resilience of the banking sector will be put to test in the second half of the year as economic conditions remain weak with no signs of the coronavirus disease (Covid-19) abating.
The three main obstacles in its path are the compression in net interest margin (NIM) from the low overnight policy rate (OPR) which could potentially decline further towards the end of the year, higher levels of non-performing loans (NPLs) and lower lending activities.
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