Net financing growth rises to 4.4% in November 2021

by BERNAMA / pic by TMR FILE 

KUALA LUMPUR – The net financing growth increased to 4.4 per cent in November from 4.0 per cent in October, driven by higher growth in outstanding loans while outstanding corporate bond growth moderated to 4.8 per cent from 5.9 per cent in October, said Bank Negara Malaysia (BNM) today.

In its monthly highlights for November 2021, the central bank said the growth in outstanding household loans increased to 4.1 per cent (October: 3.7 per cent) amid higher loan disbursements for credit card spending and the purchase of residential properties and passenger cars.

“For businesses, outstanding loan growth increased to 4.8 per cent (October: 3.1 per cent) amid continued growth in outstanding working capital loans,” it said.

The central bank said banks remained well capitalised to withstand potential stress and to support credit growth in the economy.

As of the end of November 2021, the banking system’s excess capital buffers stayed strong at RM122.3 billion. “Banks continue to facilitate repayment assistance to viable borrowers facing temporary financial difficulties,” it added.

The central bank said while overall gross and net impaired loans ratios remained broadly stable at 1.5 per cent and 0.9 per cent, the amount of impaired loans recorded a marginal decline of 2.1 per cent compared to the previous month.

It said total provisions set aside against potential credit losses currently stood at 1.9 per cent of total banking system loans.