Malaysia’s outstanding loans up 6% in June
Business loans lifted overall growth, whilst household growth was slower.
Malaysia’s outstanding loans grew 6% in June, ramping up from the 5.7% loan growth in May, according to official data from the Bank Negara Malaysia (BNM).
Growth in credit to the private non-financial sector– comprising household and corporate loans– remained steady with a 5.4% growth in June, same as in May.
Outstanding corporate bonds grew 3.4%, slowing from the 4% growth in May.
Household loans also grew slightly slower at 6.2% in June versus 6.3% in May, amidst sustained growth recorded for most loan purposes, BNM said.
Outstanding business loans grew faster in June at 5.6%, versus 4.8% in May.
By sector, higher loan growth was observed across the construction and services sectors, the central bank said.
Outside of loans, the overall asset quality of Malaysia’s banking system remained sound, according to the BNM. Overall gross and net impaired loans ratios remained stable at 1.6% and 1%, respectively.
The liquidity coverage ratio of the sector was 155.2% in June, higher than the 149.7% recorded in May.