Provisioning levels should rise to more normal levels in the coming quarters, says CIMB.
According to CIMB, leading asset quality indicators like credit card charge-off rate and company bankruptcy petitions are now a touch above the 5-year historical average and the global financial crisis average, respectively.
"Although local banks did a pre-emptive round of provisioning in 4Q11, we see scope for further increases in provisioning."
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