Malaysia eases rules to support banks amid coronavirus crisis

Allows banks to dip into capital reserves, movements restricted until mid-April

20200325 malaysia banks

Malaysia is moving to shield its economy from the worst of the impact of the coronavirus outbreak. © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysia's central bank Wednesday eased some regulations for lenders as part of additional steps to support the banking system amid the coronavirus outbreak, while the government extended a partial lockdown until mid-April to cut contagion risk.

Banking institutions may dip into their capital conservation buffer of 2.5%, operate below the minimum liquidity coverage ratio of 100%, and utilize the regulatory reserves set aside during periods of strong loan growth, Bank Negara Malaysia said in a statement.

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