PETALING JAYA: Bank Negara has warned that Malaysia’s economic recovery could take a hit, if a pullback in bank lending becomes more pervasive due to heightened concerns over banks’ asset quality.
In its Financial Stability Review (FSR) for the first half of 2021 (H1’2021), the central bank revealed that since the onset of the Covid-19 pandemic, the average value of new working capital loans extended by banks has dropped by about half compared with pre-pandemic levels.
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