'Downgrade of int banks to benefit local ones'

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 Maybank'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. -- BERNAMA

if this news was earlier maybe mbb-cr would have been a mini dragon