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Southeast Asia's Islamic banking market set for 8% growth, says S&P
12 May 2022 | Thursday The Edge Markets
Southeast Asia's US$290 billion (about RM1.27 trillion) Islamic banking market is poised to grow at a compound annual growth rate of about 8% over the next three years, primarily led by Malaysia and Indonesia.
In a report titled "Growing Belief In Southeast Asia's US$290 Billion Islamic Banking Market” released on Wednesday (May 11), S&P Global Ratings said Southeast Asia is the world's third largest Islamic banking market, forming 17% of the US$1.7 trillion in global Islamic banking assets.
S&P Global credit analyst Nikita Anand said in the major markets of Malaysia and Indonesia, Islamic banks will grow faster than conventional banks, riding on robust demand.
S&P Global said that in Malaysia, local Islamic banks could account for about 45% of the overall commercial banking loan book by the end of 2026.
