More NPL sales forecast

Leong says banks in Malaysia and the region are expected to see some deterioration in their asset quality this year, there is certainly a rising risk of NPLs.

PETALING JAYA: More banks are anticipated to sell their non-performing loans (NPLs) in the market this year with the ending of the loan moratorium last year, further impacted by the challenging global macroeconomic environment.

Although it is quite rare for banks in Malaysia to sell NPLs, analysts said global headwinds could put a dent on the asset quality of banks, which may result in such loans being sold at a discount.