Malaysia’s banking sector maintained strong liquidity and saw a slight improvement in asset quality in June 2025, Bank Negara Malaysia (BNM) data shows.
The aggregate liquidity coverage ratio rose to 160.6% from 150.4% in May, while the aggregate loan-to-fund ratio remained steady at 83.3%, compared with 83.6% the month before.
The gross impaired loans ratio eased to 1.4% from May’s 1.5%, with net impaired loans holding steady at 0.9%.
Loan loss coverage increased to 130.3% of gross impaired loans, up from 129% in May.
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