KUALA LUMPUR, Aug 14 — Credit to Malaysia’s private non financial sector grew 6.4 per cent in the second quarter of 2026, up from 5.6 per cent in the first quarter, driven by stronger business financing, Bank Negara Malaysia (BNM) said.
Governor Datuk Seri Abdul Rasheed Ghaffour said the banking system remained well-positioned to support economic activity, with healthy capital and liquidity buffers.
“The banking system continues to support economic growth.
“Banks’ healthy capital and liquidity buffers ensure that they remain well-positioned to meet the financing needs of the economy,” Abdul Rasheed told a joint press conference here today.
Business loans grew 7.2 per cent, while outstanding corporate bonds expanded 8.1 per cent during the quarter, he said.
According to Abdul Rasheed, outstanding SME financing rose to RM444 billion in Q2, compared with RM440 billion in Q1 and RM427 billion a year earlier, reflecting 4.2 per cent annual growth.
“Approval rates continued to be sustained as banks continued to meet financing demand across all sectors of the economy, particularly in agriculture, mining and quarrying, and construction,” he said.
Household loans grew 5.3 per cent during the quarter, compared with 5.4 per cent in Q1, amid stable loan growth for house purchases.
“The quality of business and household loans also remains sound, with low and stable impairment ratios. Newly restructured and rescheduled loans are also limited,” Abdul Rasheed said.
“This reflects the robust loan affordability assessments and the prudent provisioning practices by banks that has helped to preserve their loss-absorbing capacity,” he said.
BNM said it remained mindful of economic disruptions arising from the Middle East conflict and their impact on SMEs.
As part of targeted support, RM2.8 billion had been approved under the RM5 billion SME Stabilisation Relief Facility (SME SRF) as of August 7, benefiting more than 4,900 SME accounts.
The facility provides working capital support for viable businesses affected by the conflict to sustain operations and navigate the period of uncertainty.
Abdul Rasheed said the facility remained open for applications until the end of the year or until the fund was fully utilised.
“To this end, we have proactively produced the RM5 billion SME Stabilisation Facility, called the SME SRF. And this fund is to assist SMEs, including the micro-entrepreneurs as well, that are affected by the Middle East conflict,” he said.
BNM also introduced a RM10 billion priority scheme, delivered by the Credit Guarantee Corporation, aimed at mobilising private-sector financing in areas including inclusion, climate, productivity and resilience.
Abdul Rasheed said such structural enhancements to the financial ecosystem were important in helping SMEs weather shocks, capture new opportunities and emerge as future domestic champions.
