“We cut our projected 2020 loan growth for banks from 3%-4% to 0%, given the expected contraction in gross domestic product and the negative impact from the MCO, ” CGS-CIMB said in a report.
PETALING JAYA: A complete standstill in loan growth in the next few months as a result of a disruption by the movement control order (MCO) amid the outbreak of Covid-19 is expected for local lenders.
Analysts said they were slashing their loan growth projections given the negative impact from the MCO and overall slower economic growth, which is tied to the lending business of banks.
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