Loan indicators show strong growth rates
PETALING JAYA: Overall loan indicators in the country registered strong annual growth rates across business and household sectors, Bank Negara said in its latest monetary and financial development report.
On a net basis, banking loans and oustanding private debt securities (PDS) expanded at a combined annual rate of 8.6% as at end of last year.
Gross financing in the banking system and the capital market remained high at RM69.2bil in December, although there was a drop compared with RM84.8bil recorded in November.
In the business sector, demand for financing was lower while loan approvals and disbursement remained relatively strong.
Loans were mainly channelled to the manufacturing, retail, restaurant and hotel, as well as primary agricultural sectors for working capital purposes.
As at end-December, business loans oustanding expanded at an annual rate of 2.6%.
In the household sector, demand for financing of passenger cars and personal loans climbed.
Loans disbursement rose in tandem, and led to the annual growth rate of 10% recorded as at end of December.
Net fund raising activity in the capital market stood at RM4.3bil last month, but was lower compared with November due to several large issuances of PDS and Maxis Bhd’s share sale during the month.
Meanwhile, the average fixed deposit interest rate was unchanged in December.
The average base lending rate stood at 5.51% as at Jan 15, while the average lending rate trended lower to 4.83% as at end of December compared with 4.91% in November.
Broad money supply, or M3, grew at an annual pace of 9.1% and up RM16.6bil on a monthly basis. The increase in M3 in December was due to higher credit by banks to the private sector, higher government spending and net inflows from abroad.
The banking system’s capitalisation remained strong with the risk-weighted capital ratio and core capital ratio at 14.7% and 13.1% respectively.
The net non-performing loan ratio improved to 1.8%, while aggregate loan loss coverage ratio was above 90%.
On a net basis, banking loans and oustanding private debt securities (PDS) expanded at a combined annual rate of 8.6% as at end of last year.
Gross financing in the banking system and the capital market remained high at RM69.2bil in December, although there was a drop compared with RM84.8bil recorded in November.In the business sector, demand for financing was lower while loan approvals and disbursement remained relatively strong.
Loans were mainly channelled to the manufacturing, retail, restaurant and hotel, as well as primary agricultural sectors for working capital purposes.
As at end-December, business loans oustanding expanded at an annual rate of 2.6%.
In the household sector, demand for financing of passenger cars and personal loans climbed.
Loans disbursement rose in tandem, and led to the annual growth rate of 10% recorded as at end of December.
Net fund raising activity in the capital market stood at RM4.3bil last month, but was lower compared with November due to several large issuances of PDS and Maxis Bhd’s share sale during the month.
Meanwhile, the average fixed deposit interest rate was unchanged in December.
The average base lending rate stood at 5.51% as at Jan 15, while the average lending rate trended lower to 4.83% as at end of December compared with 4.91% in November.
Broad money supply, or M3, grew at an annual pace of 9.1% and up RM16.6bil on a monthly basis. The increase in M3 in December was due to higher credit by banks to the private sector, higher government spending and net inflows from abroad.
The banking system’s capitalisation remained strong with the risk-weighted capital ratio and core capital ratio at 14.7% and 13.1% respectively.
The net non-performing loan ratio improved to 1.8%, while aggregate loan loss coverage ratio was above 90%.
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