KUALA LUMPUR, Feb 14 — Local lending continues to be robust, according to the Association of Banks in Malaysia (Abim) who said business and private borrowings rose at the end of last year.

It further said that banks were actively financing new ventures and assured "viable businesses” that credit remained available.

"In the month of December 2016, outstanding business loans of the banking system expanded by 5.0 per cent year-on-year whilst loans to households grew by 5.3 per cent during the same period,” Abim said in a statement.

"Banks on their part are committed to enhance their capability to support businesses and entrepreneurs which include the offering of various loan packages to meet the needs of innovative enterprises.”

Abim also said the liquidity of the local financial system remained "healthy”, with the Basel III liquidity coverage ratio standing at 125 per cent at the end of last year.

Malaysian household debt hit 89.1 per cent as a ratio of GDP in 2015, and is among the highest in the region.