Horizon.my

Here are the key highlights for Malaysia’s banking sector in December 08 based on figures published by Bank Negara.

1. Loan growth of 12.8% year-on-year, driven by business and mortgage loans. This is as the strongest showing since 1998.

2. Industry NPL ratio stood at 4.1% (down from 5.6% last year). NPL is now at its lowest since 1998.

3. Liquidity is strong with Loan-to-Deposit Ratio at 74.7% (from 76.7% in Nov-08).

However there are some headwinds to face. Leading indicators suggest that growth is slowing. Loan approvals and applications are down significantly (around 20%), with loan applications shrinking for the fourth consecutive month.