Thursday, September 8, 2011

OPR Stay at 3% and Slow down in loan application and approval indicates economy is slowing down...

OPR Stays at 3%

Bank Negara likely to keep OPR at 3% amid deteriorating global outlook

Amid a deteriorating global outlook, Bank Negara is expected to stay on the cautious side and keep rates steady at 3% at its monetary policy meeting today.

Full report:

Slower Loan
OSK Research Sdn Bhd’s (OSK Research) banking sector report released recently shows that loans growth in the country continues to moderate.

The report indicated that total loans growth toned down to 12.8 per cent from 13.8 per cent to 13.4 per cent year-on-year (y-o-y) due to weaker growth in the business loans segment which was up 14.3 per cent.

Business loans growth was lower due to weaker purchases of non-residential property (up 20.2 per cent), construction (up 18 per cent) and working capital (up 10 per cent).

On the other hand, weak loans growth in purchase of passenger cars (up 5.8 per cent) and residential property (up 12.8 per cent) contributed to slowing household loans growth.

Loan applications growth trended lower to 8.5 per cent from 29.9 per cent y-o-y on muted growth in both the business (9.3 per cent for July and 38.5 per cent for June) and household segments (7.6 per cent for July and 21.7 per cent for June).

Business loan applications declined on slower demand in loans for the purchase of non-residential property (up 25.6 per cent), construction (down 18.7 per cent) and working capital (down 16.6 per cent).

Full report: