Loans growth fell faster in April
KUALA LUMPUR, June 1— Loan applications have fallen in tandem with slower economic growth and following new responsible lending guidelines imposed by Bank Negara, statistics show.
Figures released by the central bank show that loan applications grew by 5.8 per cent in April as compared with 14.1 per cent in March and and 47.3 per cent in February.
Loan approvals shrank 11.4 per cent in April as compared with 2.2 per cent in March and a growth of 17.6 per cent in February.
Net financing grew 12. 8 per cent in April, down from 13.3 per cent in March and about the same pace as February.
The net impaired loans ratio crept up slightly to 1.8 per cent from 1.7 per cent in March but was still below the 1.9 per cent recorded in February.
Bank Negara said that net financing to the private sector grew at a slower pace in April due to lower net private debt security (PDS) issuances and a stable rate of increase in outstanding banking system loans.
It said that business loans outstanding increased by 11.7 per cent during the month with a higher amount of loans extended to businesses in the real estate, finance insurance and business services; manufacturing and wholesale and retail, restaurants and hotels sectors.
The central bank also said that loans extended to households grew at a more moderate pace during the month but continued to remain high driven mainly by loans for purchase of residential and non-residential properties and passenger cars.
Gross domestic product (GDP) grew at a slower pace of 4.7 per cent in the first quarter compared with 5.2 per cent in the previous quarter due to challenging global economic conditions.
First-quarter exports contracted the most in nine months, slumping 20.8 per cent compared with the first quarter of last year.
Domestic demand remained robust, however, with growth in the construction sector surging 15.5 per cent in the first quarter, double the rate of the previous quarter.
Malaysia is projected to register economic growth of between 4-5 per cent this year.