KUALA LUMPUR (April 1): Malaysia s household debt-to-Gross Domestic Product (GDP) ratio surged to a new peak of 93.3% as at December 2020 from its previous record high of 87.5% in June 2020, according to Bank Negara Malaysia (BNM).
BNM said this is mainly because growth in the nation’s household debt had normalised to pre-pandemic levels in the second half of 2020 (2H20), but the GDP remained below pre-Covid-19 levels. A concern over high household debt is that it may lead to a rapid deleveraging by households in the aftermath of a crisis, thus dampening or derailing economic recovery, BNM warned in its Financial Stability Review for Second Half 2020 report released yesterday.
Malaysia s household debt-to-GDP ratio surges to new peak of 93 3%
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Bank Negara: Most households have resumed repayments in banking system | Malaysia
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