, Malaysia
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Malaysian banks’ loan ratio at 1.6% in Feb

Loan loss coverage is at 120% of impaired loans, central bank data showed.

The overall asset quality of Malaysia’s banking system remained “intact” and stable, according to the latest data released by the Bank Negara Malaysia (BNM).

Gross and net impaired loan ratios remained at 1.6% and 1% as of February 2024, respectively, BNM data showed.

Loan loss coverage ratio (including regulator reserves) is at 120% of impaired loans. Total provisions account for 1.5% of total loans.

ALSO READ: MAS expands regulations for digital payment token service providers

The liquidity coverage ratio is at 153.7% in February, lower than the 160.2% reported for January 2024.

The aggregate loan-to-fund ratio remained broadly stable at 81.8%, slightly higher than the 81.6% in January, according to the central bank.

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