The sector makes up 5.7.8% of the total loans.
This chart from Fitch Solutions shows that household loan growth in Malaysian banks has eased to about 5% in April, from more than 6% in November 2018. The sector makes up 57.8% of the total loans.
“We expect credit growth to households to only ease slightly further over the coming months. Whilst the Malaysian economy is likely to continue slowing over the coming months, we still expect steady private consumption growth, in light of the $8.94b (MYR37b) the government plans to pay out in tax refunds in 2019,” the ratings agency said in a report.
Meanwhile, credit card loans hit around 4% in April. Overall loan growth came in at 4.6% in the 12 months up to May.
Fitch thinks that loan growth will hit 4.5% for 2019, a slip from the 5.6% in 2018. “However, we believe the moderation, whilst not yet over, is likely approaching the trough over the coming months. Loans to households, which are likely to still slow amid high indebtedness, would see a gentler pace of deceleration, especially as the disbursement of tax refunds by the government is likely to help support the segment,” the firm added.
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