News – Business loans dip


Every bankers want for an increased in loan growth each and every month/year. This is not a linear growth but an exponential growth. Just imagine an economy that is fuel by an increased in business loan to grow. There will be tipping point.

A revisit of exponential growth:

From The Star Online:

Business loan growth is expected to slow down although not significantly in the coming months and will not be a drag on overall earnings of banks, according to analysts.

Many quarters viewed the slowdown in the latest business loan indicators in July as temporary and much would depend on the roll-out of mega projects and the state of the country’s economy.

A banking analyst with MIDF Research told StarBiz that he expected business loans for the second half to be softer compared with the first half partly due to slower capital market-related loans.

Nevertheless, he felt the moderation in business loan growth would be short-lived.

He added that the slower business loan growth would not impact the overall earnings of banks as there were other sources of income besides business or corporate loans.

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