KUALA LUMPUR, Aug 1:
Malaysia's banking system's loans will sustain its expansion at between 9-10% this year, compared with +10.6% in 2013.
This is despite being constrained by stringent rules on lending to households, as well as curbs on the property market, said RHB Research House.
In a note today, RHB Research in commenting on Bank Negara Malaysia's (BNM) statement on monetary and financial developments as of June 2014, said the broad monetary aggregate inched up but loan growth weakened in June.
The research house said June's loan growth which weakened to 9.3% year-on-year from +9.7% in May and compared to the +9.1% recorded in the same period of 2013, was attributed to a weaker growth in
household and corporate loans during the month.
The central bank yesterday highlighted that on an annual basis, broad money or M3 growth was relatively stable at 5.6% in June.
The expansion in M3 was mainly on account of credit extension to the private sector by the banking system. The expansion, however, was partially offset by a decline in net foreign assets.
On the overall loan demand, BNM said it had increased with higher loan applications, particularly from the business sector.
Source: The Rakyat Post