BRIEF-Moody's says stable outlook for Malaysia's banking system driven by strong capital, government support

Reuters

May 26 (Reuters) - Moody's On Malaysian Banks

* Stable outlook for Malaysia's banking system driven by strong capital, government support

* Banks' operating conditions will continue to be challenging in Malaysia. Headwinds include lower crude oil prices, weak external demand

* Banks' asset quality will deteriorate from current strong levels but capitalization will remain strong

* Expects banks' funding and liquidity profiles will remain stable, with funding to remain as a key strength of banking system

* Profitability will also deteriorate over the next 12-18 months

* Continues to view Malaysia as a high-support country Source text for Eikon: )