KUALA LUMPUR (March 29): Malaysia continued to show an overall improvement in loan growth as of end-February, after credit extended to the private non-financial sector grew by 5.1% year-on-year (y-o-y), surpassing the 5% growth recorded in January 2024.

Outstanding loans experienced a higher growth rate of 5.6% y-o-y, compared to the 5.4% reported in the previous month, Bank Negara Malaysia (BNM) said in its Monthly Highlights Report for February 2024, released on Friday.

Outstanding business loans grew at a faster pace in February at 4.7%, higher than 4.3% in the preceding month. This growth was driven by increased activity in both working capital and investment-related loans, the central bank said. 

Epsom College in Malaysia ("Epsom") is proud to announce that it has been awarded the esteemed double Beacon status from the Council of British International Schools ("COBIS") in recognition of its excellence providing the highest standards of 'Student Welfare' and 'Leadership in the School' globally. Out of COBIS' 450 members, Epsom is the first and only school in Malaysia, of only 6 schools worldwide, to be awarded the double Beacon Status, highlighting its commitment to excellence in education, innovation in teaching practices, and dedication to fostering a nurturing and stimulating learning environment for its students.

Meanwhile, the growth rate of outstanding corporate bonds moderated to 3.3%, down from the previous 3.6% recorded in January 2024. 

As for the household sector, outstanding loan growth remained stable at 6.1%, consistent with the rate observed in January 2024 at 6%, amid sustained growth observed across key loan purposes. It is worth highlighting that household loan disbursements grew at a more modest rate of 11.1%, compared with the robust 19% growth seen in January.

BNM emphasised that the banking system maintains healthy liquidity buffers, with the aggregate liquidity coverage ratio standing at 153.7% (compared to January 2024’s 160.2%). 

Additionally, the aggregate loan-to-fund ratio remained broadly stable at 81.8% (up from 81.6%).

Regarding asset quality, both the overall gross and net impaired loans ratios remained steady at 1.6% and 1%, respectively.

“Loan loss coverage ratio [including regulatory reserves] continues to be at a prudent level of 120% [January 2024: 120.8%] of impaired loans, with total provisions accounting for 1.5% of total loans,” BNM added.   

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