Loan Growth Moderation Expected to Continue

KUALA LUMPUR: The recent set of central bank data on loan growth in the banking sector for the month of October suggests a slowdown in lending momentum, which reflects a more cautious sentiment on economic growth.

Some banks have also trimmed their loan growth targets during the recently concluded quarterly earnings season. AMMB Holdings Bhd (AmBank), for one, has reduced its financial year 2020 (FY20) loan growth target to between 4% and 5%, from the 6% it set in May this year, while Alliance Bank Malaysia Bhd has revised it to between 5% and 7%, from 7% previously (see chart).

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