Annual Growth In M3 Moderates Slightly To 11.4 Per Cent In October

5 Muharram 1433 Hijrah

KUALA LUMPUR, Nov 30 , 2011- The annual growth in broad money (M3) moderated slightly to 11.4 per cent in October, said Bank Negara Malaysia (BNM) Wednesday.

The expansionary impact of private sector credit and portfolio inflows on M3 was mitigated by higher placement of deposits by the government arising from the proceeds of the issuance of government securities, it said in a statement here.

BNM said net financing to the private sector grew at a slower pace in October due to a more modest increase in outstanding banking system loans and net issuances of private debt securities (PDS).

"While business loans outstanding moderated slightly due to large repayments during the month, loans disbursed to this sector remained high.

"Loans to households, however, continued to rise steadily, driven mainly by loans for the purchase of residential and non-residential properties and cars," it said.

On banking system, the central banks said the system remained sound with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) improving to 15 per cent and 12.9 per cent respectively.

"This was mainly attributed to a planned capital raising exercise by a bank and half-year profit recorded by the industry," it said.

BNM noted that the level of net impaired loans remained stable at 1.9 per cent of net loans, while the loan loss coverage ratio was sustained at a high level of 96.7 per cent.

 Source: BERNAMA