LOCAL BANKS REMAIN WELL-CAPITALISED, SAYS GOVERNOR

KUALA LUMPUR, March 4 (Bernama) -- Malaysian banks remain well-capitalised
with adequate liquidity in the system and this has enabled them to continue
lending even in times of uncertainty, said Central Bank of Malaysia governor,
Dr Zeti Akhtar Aziz.

In an interview with the Oxford Business Group (OBG), Zeti said faced with
the challenge of the slowest economic growth for eight years, it was this
liquidity which would be one of the prime tools for promoting growth and staving
off an economic downturn.

"Another step is to provide funds for small and medium enterprises.

"These measures follow lessons learned from the Asian financial crisis, such
as encouraging banks to restructure the loans before they turn bad," Zeti said
in a statement released by the OBG here Wednesday.

Zeti said Malaysia was well-placed to weather the current global financial
crisis.

"Several years of reforms, institutional development and capacity building,
continuous efforts to enhance corporate governance and risk management standards
and practices have significantly strengthened Malaysia's banking system," she
said.

-- BERNAMA