KUALA LUMPUR (Dec 31): Credit to the private non-financial sector accelerated slightly in November 2024, compared to October, primarily due to increased debt note issuance, according to Bank Negara Malaysia (BNM).

This credit — comprising loans to households and non-financial corporations from the banking system, and development financial institutions or DFIs, and corporate bonds issued by non-financial corporations — grew by 5.2% in November, up from 5.1% in October.

The growth is driven by higher growth in corporate bonds of 3.8%, as compared to 2.6% in October, the central bank said in its monthly highlights report for November released on Tuesday.

Business loan growth in November was the same as October, at 5.4%.

Breaking it down by purpose, loan growth for investment-related loans rose to 9.4% in November, from 9.2% in October, driven particularly by small and medium enterprises. Loans for working capital purposes moderated to 3.5% from 3.8%.

Meanwhile, households’ loan growth remained largely flat, with a marginal decline to 6% in November from 6.1% in October, amid broadly steady growth across loan purposes.

On the banking system, BNM said assets remained “sound” and “supportive of financial intermediation”, with healthy liquidity positions and stable impaired loans ratios.

The banking system’s aggregate liquidity coverage ratio stood at 147.9% in November versus 146.8% in October, while gross and net impaired loans ratios remained stable at 1.5% and 0.9% respectively.

“Loan loss coverage ratio (including regulatory reserves) continued to prudent at 128.1% of impaired loans (October 2024: 126.6%),” it added.