KUALA LUMPUR: Credit to the private non-financial sector grew by 3.7 per cent as at end-April, mainly due to slower growth in credit to businesses (2.4 per cent; March: 3.2 per cent), said Bank Negara Malaysia (BNM).
In its April 2023 monthly highlights report, BNM said outstanding business loans grew at a slower pace of 1.0 per cent in April 2023 compared with 2.4 per cent in March 2023 amid weaker growth in working capital loans, particularly in the non-SME segment.
Nonetheless, growth in outstanding corporate bonds was sustained at 4.4 per cent.
For households, it said outstanding loan growth expanded by 4.9 per cent from 5.1 per cent in March 2023, supported by higher growth in consumption-related credit.
"This reflected sustained growth in credit card spending and loans for the purchase of cars.
"The growth in loans for the purchase of houses moderated slightly to 6.7 per cent from 7.0 per cent in March 2023)," it added.
Meanwhile, the banking sector remains well-capitalised to support economic recovery.
With excess capital buffers of RM136.2 billion, BNM said banks would continue to record strong capital buffers to absorb any unexpected shocks while preserving their ability to provide financing to the economy.
Banks maintained strong liquidity and funding positions to support intermediation, it said.
The central bank said the banking system continues to record healthy liquidity buffers, with the aggregate Liquidity Coverage Ratio at 154.3 per cent from 157.5 per cent in March 2023.
"The aggregate loan-to-fund ratio remained largely stable at 82.4 per cent versus 85.1 per cent in the previous month," it added.