KUALA LUMPUR: The growth of personal financing (PF), which drove the earlier rapid expansion in household debt, has moderated significantly after a series of cross-cutting measures were implemented since 2012.
Bank Negara said in its Financial Stability and Payment Systems Report 2018 issued on Wednesday that in 2018, the growth fell to 2.3% from 2.8% in 2017. The peak was 25.2% in 2008 during the Global Financial Crisis.
“The moderation in growth was driven primarily by NBFIs (non-bank financial institutions), which accounted for more than 40% of total PF,” it said.
Hence, the share of PF to total household debt has trended downwards to 14.5% as at end-2018 [2013: 16.4% (peak)].
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