KUALA LUMPUR, Dis 31 — Broad money (M3) continued to post a positive growth of 3.7 per cent in November, albeit, at a more moderate pace from four per cent recorded in October.
Bank Negara Malaysia (BNM) said the growth was driven mainly by the extension of credit to the private sector by the banking system, amidst continued decline in net foreign assets.
Net financing to the private sector grew by 8.4 per cent in November from 8.8 per cent in the previous month, driven by higher growth in net outstanding issuances of private debt securities (PDS) amidst a moderation in the growth of banking system loans, the central bank said in a statement.
The central bank said business loans grew at a slower pace of 8.7 per cent during the month compared to 9.8 per cent in October due to the slower annual growth in the outstanding loans in the electricity, gas and water supply; real estate; transport, storage and communications; and wholesale and retail trade, restaurants and hotels sectors.
It added that loans to households also registered a slower annual growth of 7.8 per cent during the month from eight per cent previously.
Meanwhile, BNM said the banking system remained well-capitalised with the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio at 12.4 per cent, 13.3 per cent and 15.5 per cent, respectively.
“The level of net impaired loans was sustained at 1.2 per cent of net loans, with loan loss coverage ratio stable at 97.2 per cent,” it said.
The international reserves of BNM amounted to RM421.6 billion (US$94.9 billion) as at Dec 15, which were sufficient to finance 8.6 months of retained imports and was 1.1 times the short-term external debt. — Bernama
