Malaysian bank liquidity holds in July as business loans accelerate to 7.5%

Gross and impaired loan ratios were unchanged during the month.

The Malaysian banking system continued to hold adequate liquidity asset buffers in July, whilst impaired loans remained unchanged, according to the Bank Negara Malaysia (BNM).

Liquidity coverage ratio (LCR) stood at 148.7% in July, slightly lower than the 149.6% recorded in June, but still well above the regulatory minimum, the central bank said.

Gross and net impaired loans ratios remained broadly unchanged at 1.4% and 1%, respectively, the BNM said.

Loan loss coverage ratio is 125% of gross impaired loans as of July, higher than the 124.6% in June.

Business loan growth accelerated to a 7.5% growth in July from 7.2% the previous months, whilst household loan growth remained unchanged at 5.3%.