Malaysia'S banking system remains well capitalised with a risk-weighted capital ratio and core capital ratio at 14.7 per cent and 13 per cent respectively, said Bank Negara Malaysia yesterday.
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/27banking/Article/index_html
Published: May 21, 2012
In a statement on the Monetary and Financial Developments for March, the central bank said the level of net impaired loans improved to 1.7 per cent of net loans, due to a write-off exercise by a number of banks as part of the balance sheet strengthening exercise.
"Loan loss coverage was sustained at above 90 per cent," it added.
However, it said that in terms of retail lending rates, the average base lending rate of commercial banks remained unchanged at 6.53 per cent and interbank rates were also stable in March.
"Broad money expanded at an annual rate of 15 per cent in March and during the month, the increase in credit extended by banks to the private sector was partially offset by capital outflows," it added.
It said net financing to the private sector expanded by RM18.7 billion in March due to an increase in outstanding banking system loans and higher net issuances of private debt securities.
"There was a continued expansion in banking system loans to businesses, mainly to wholesale and retail, restaurants and hotels, transport, storage and communication and the real estate sectors," it added.
Bank Negara said loans to households expanded during the month, driven mainly by those for the purchase of residential properties, securities and passenger cars.
It said loan demand increased significantly with higher applications from both businesses and households. Bernama
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