PETALING JAYA: The banking system’s loans continued to expand at a steady pace in April 2026, rising 5.6% year-on-year (y-o-y) and 1.8% year-to-date, broadly tracking Kenanga Research’s expectations of 5% growth in 2026.
While asset quality remains stable for now, the research house said banks are taking a cautious stance as they monitor potential spillover risks from sustained high oil prices and inflationary pressures that could begin to weigh on borrower repayment trends in the coming quarters.
