Banks loans
PETALING JAYA: Despite tightening the enforcement of the movement control order (MCO) 3.0, the banking sector is expected to hold up even though the stricter ruling will dampen business and consumer sentiment.
Most analysts are maintaining their loan growth projection for the year. While they anticipate the gross impaired loan (GIL) ratio to inch up, as the stricter enforcement may weaken some borrowers’ debt-paying ability, they say the number will likely remain benign.
Net interest margin (NIM) for the sector is set to improve in view of no further cut in the overnight policy rate (OPR) this year; hence higher profitability for banks is on the cards.