Malaysia’s household loans steady at 6% in April

The banking system recorded healthy liquidity buffers, the central bank said.

Malaysia’s household loans remained steady at 6% in April 2025, whilst business loans moderated.

Growth in business loans moderated slightly to 4.6% during the month compared to the 4.8% increase reported in March, according to data from the Bank Negara Malaysia (BNM), on slower loan growth in the service sector.

Credit to the private non-financial sector grew 5.5% in April, the same as March.

The banking system reportedly continued to record healthy liquidity buffers, with an aggregate Liquidity Coverage Ratio (LCR) of 155.8% in April from 151.6% in March.

Gross and net impaired loans ratios were maintained at 1.4% and 0.9%, respectively, the central bank said.

Loan loss coverage ratio is at 131% of gross impaired loans.