KUALA LUMPUR (Jan 30): Malaysia’s gross loan growth moderated in December 2025 as business loan expansion slowed and household lending edged lower, official data from Bank Negara Malaysia (BNM) showed on Friday.

Credit to the private non-financial sector grew by 5.3% in December last year, easing from 5.5% in November, the central bank said in a statement.

Business loans expanded by 3.7% in December versus 5% in November.

BNM said the moderation in business loan growth reflected slower lending among non-small and medium enterprises, while loan growth to small and medium enterprises (SMEs) was broadly sustained.

Despite the moderation in loan growth, overall loan disbursements were higher in December.

Household loan growth grew by 5.6% in December, marginally lower than 5.7% in November.

Meanwhile, growth in outstanding corporate bonds accelerated to 6.9% compared to November’s 5.5% growth.

The data covers loans to households and non-financial corporations from the banking system and development financial institutions, as well as corporate bonds issued by non-financial corporations, including short-term papers.

BNM said banks’ asset quality remained intact, with the gross impaired loans ratio stable at 1.4%, while the net impaired loans ratio declined slightly to 0.9% from 1% in November.

Loan loss coverage ratio (including regulatory reserves) in December remained prudent at 128.7% of gross impaired loans, an increase from 124.6% in November.

The banking system continued to record healthy liquidity buffers with the aggregate liquidity coverage ratio in December rising to 154.8%, up from 146.6% in November.

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