Credit demand remains healthy for local banks


Hong Leong Investment Bank Research remains bullish on the sector.

PETALING JAYA: Malaysia’s banking sector statistics signal healthy demand for credit despite some moderation in loan growth in February.

Bank Negara’s banking sector statistics for February 2025 showed total system loans grew by 5.2% year-on-year (y-o-y) for the month, but growth was flat on a month-on-month (m-o-m) basis, as both retail and business loans reported weak growth. Deposits expanded at a faster 3.5% y-o-y.

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