KUALA LUMPUR (Sept 30): Malaysia’s gross loan growth moderated in August 2024, amid lower outstanding loan growth, according to Bank Negara Malaysia (BNM).

Credit to the private non-financial sector expanded 5.3% year-on-year in August, compared to 5.5% in July 2024, the central bank said in a statement on Monday. Outstanding loan growth came in at 5.8% in August versus 6.2% in July.

Household loan growth was unchanged at 6.2% in August, with steady growth across most purposes, including the purchase of houses and cars.

For businesses, loan growth moderated to 5.2% in August from 6% in July, due to slower growth in working capital loans among non-small and medium enterprises.

“Notwithstanding, SME loan growth was sustained across both working capital and investment purposes,” it said.

Outstanding corporate bonds grew 3.2% in August versus 3% in July.

BNM said the banking system continued to record healthy liquidity buffers with an aggregate liquidity coverage ratio of 145.4% in August as compared to 150.8% in July.

The aggregate loan-to-fund ratio remained broadly stable at 83.8% in August against 83% in July.

Asset quality-wise, gross and net impaired loans ratios remained stable at 1.6% and 1%, respectively. Loan loss coverage ratio (including regulatory reserves) remained at a prudent level of 123.8% of impaired loans in August as compared to 124.5% in July.