File pic - AZMAN GHANI/ The Star
KUALA LUMPUR: Growth in credit to the private non-financial sector was sustained at 5.4 per cent in May 2024 on the back of a rise in corporate bonds and moderating loan growth, said Bank Negara Malaysia (BNM).
In its monthly highlights released today, the central bank said loan growth moderated to 5.7 per cent from April’s 6.0 per cent.
Outstanding corporate bonds grew by 4.0 per cent in May versus April’s 3.4 per cent.
"Outstanding business loans grew at a more moderate pace of 4.8 per cent (April 2024: 5.6 per cent) amid slower growth in working capital loans while investment-related loans expanded, it said.
Meanwhile, household loan growth increased to 6.3 per cent from 6.2 per cent in April 2024, driven mainly by housing and car loans.
Loan applications and disbursements among household borrowers continued to be forthcoming.
Overall, the banking system continued to record healthy liquidity buffers with the aggregate liquidity coverage ratio of 149.7 per cent (April 2024: 152.2 per cent) while the aggregate loan-to-fund ratio remained broadly stable at 82.2 per cent (April 2024: 82.1 per cent).
The bank’s gross and net impaired loan ratios remained stable at 1.6 per cent and 1.0 per cent, respectively.
As of end-May 2024, total provisions stood at RM32 billion (April 2024: RM32.4 billion).
BNM said global financial market volatility remains due to uncertainty over the future path of US monetary policy.
Despite this, several major central banks, including those in Switzerland and Sweden, have begun easing monetary policy amid signs of cooling inflation.
At home, headline inflation edged higher to 2.0 per cent in May against 1.8 per cent in April 2024, driven mainly by selected necessities, notably fresh food and utilities, while core inflation was unchanged at 1.9 per cent.
Against this backdrop, the ringgit continued to perform positively by appreciating by 1.2 per cent against the US dollar amid non-resident inflows into the domestic bond and equity markets. - Bernama
