Linked to Genting Hong Kong’s liquidation woes, RHB touts its financial resilience

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RHB is among three Malaysian banks that could potentially take a major hit from Genting Hong Kong’s liquidation filing. — Reuters pic
RHB is among three Malaysian banks that could potentially take a major hit from Genting Hong Kong’s liquidation filing. — Reuters pic

KUALA LUMPUR, Jan 27 ― The RHB Banking Group (RHB) today proclaimed its financial resilience after being connected to potential losses for Malaysian banks that had provided credit to troubled Asian cruise operator Genting Hong Kong.

RHB touted its strong capital and liquidity position and said that it has always and continues to be preemptive in all its dealings to make certain its asset quality is firmly maintained.

“We refer to the recent news articles suggesting that RHB is amongst a number of banks that will be greatly impacted by developments at Genting Hong Kong. In this regard, we would like to reiterate that RHB does not make public comments on matters concerning its customers.

“Nevertheless, we would like to state that as a financial services group we exercise prudence in our financial management practices, and in doing so we continue to take proactive measures to ensure that our asset quality remains strong.

“RHB is financially resilient with strong capital and liquidity positions,” a spokesman for RHB told Malay Mail in a statement.

RHB is among three Malaysian banks that could potentially take a major hit from Genting Hong Kong’s liquidation filing.

RHB was among three Malaysian banks named in a Straits Times article on January 23 as one of the chief unsecured creditors of Genting Hong Kong, with a combined exposure of US$600 million (RM2.5 billion).

The other two Malaysian banks named were Maybank and CIMB.

Citing unnamed sources, the Singapore newspaper reported that all three Malaysian banks — who all have regional presence in South-east Asia — are well capitalised, but a hit from Genting Hong Kong is set to have serious consequences.

Genting Hong Kong’s liquidation filing came just a week after its German shipbuilding subsidiary MV Werften went into insolvency, a development that triggered cross-defaults for the entire group’s various financing arrangements amounting to more than US$2.7 billion, the Straits Times reported.

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