KUALA LUMPUR: Web financing development elevated barely to 4.0 per cent in October from 3.9 per cent in September, mirrored larger development in excellent loans, amid moderation in excellent company bond development, mentioned Financial institution Negara Malaysia (BNM) at this time.
In its month-to-month highlights for October 2021, the central financial institution mentioned excellent family mortgage development elevated to three.7 per cent versus 3.2 per cent within the earlier month amid larger mortgage disbursements throughout all functions.
“For companies, excellent mortgage development in October stood at 3.1 per cent in opposition to 2.3 per cent in September, continued to be supported by larger development in working capital loans (October: 5.9 per cent; September: 4.5 per cent), which remained above its historic common,” it mentioned.
The central financial institution mentioned banking system funding and liquidity positions remained supportive of intermediation exercise.
As of end-October 2021, the banking system’s liquidity protection ratio (LCR) remained robust with October at 153.3 per cent versus September’s 154.4 per cent.
“Mortgage-to-fund and the loan-to-fund-and-equity ratios additionally remained steady at 81.6 per cent and 71.1 per cent respectively,” it added.
BNM mentioned general gross impaired loans ratio declined marginally to 1.5 per cent from September’s 1.6 per cent, pushed by the family section.
It mentioned banks proceed to assist viable debtors going through short-term monetary difficulties via compensation help packages and proceed to be prudent in mortgage loss provisioning.
Complete provisions put aside in opposition to potential credit score losses stands at 1.9 per cent of the overall banking system loans, it mentioned. – Bernama
