Malaysia’s gross loan growth eased in November as growth in business loans and corporate bonds moderated slightly, according to data released by the central bank on Wednesday.
Credit to the private non-financial sector grew 5.5% year-on-year in November, a slight dip from the 5.7% recorded in October. This was supported by a 5.5% growth in outstanding loans (October: 5.6%) and a 5.5% increase in corporate bonds (October: 5.8%), Bank Negara Malaysia (BNM) said in its November 2025 monthly highlights report.
Business loan growth moderated to 5% (October: 5.5%), primarily due to slower lending to small and medium enterprises (SMEs). Conversely, loan growth among non-SMEs picked up, driven largely by investment-related activities.
Household loan growth held steady at 5.7%, underpinned by consistent demand across most loan categories.
BNM said the banking system's asset quality remained “sound and stable”, with the overall gross impaired loans ratio unchanged at 1.4%, while the net impaired loans ratio edged up marginally to 1% (October: 0.9%).
The loan loss coverage ratio — including regulatory reserves — remained prudent at 124.6% of impaired loans, compared with 126.5% in October.
Banks continue to maintain healthy liquidity buffers, the central bank further noted, with an aggregate liquidity coverage ratio of 145.6% versus 147.5% in October.
Source: theedgemalaysia