Will Maybank follow suit to raise its base rates?
KUALA LUMPUR: The asset quality of the banking system remained sound in August and the level of impaired loans remained stable at 1.2% of total loans net of individual impairment provisions.
Bank Negara Malaysia (BNM) said on Friday BNM says banks maintained sufficient buffers for potential credit losses in August, with loan loss coverage ratio at 81.4%.
In its monthy highlights for August it said net financing growth was sustained at 6.6% in August (July: 6.8%).
Outstanding loan growth of the banking system increased to 5.8% (July: 5.6%), while the growth in net outstanding issuances of corporate bonds moderated to 9.0% (July: 10.6%).
The higher loan growth was driven by businesses (August: 7.2%; July: 6.7%), with expansion in the construction, and finance, insurance and business services sectors.
BNM said in August, domestic financial markets were mainly supported by positive sentiments arising from both external and domestic factors.
It said globally, concerns on softening inflation in the US led to a broad weakening of the US dollar and increased appetite for regional financial assets, including those in Malaysia.
“Domestically, better-than-expected 2Q 2017 GDP growth and corporate earnings provided additional support to sentiments.
“However, investors remained cautious during the month amidst escalating geopolitical tensions,” it said.
BNM said net financing growth sustained at 6.6% in August (July: 6.8%). Outstanding loan growth of the banking system increased to 5.8% (July: 5.6%), while the growth in net outstanding issuances of corporate bonds moderated to 9.0% (July: 10.6%).
The higher loan growth was driven by businesses (August: 7.2%; July: 6.7%), with expansion in the construction, and finance, insurance and business services sectors.
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