KUALA LUMPUR: Bank Negara Malaysia said net financing to the private sector increased by RM13.4 billion in February on a month-on-month basis, driven by higher private debt securities (PDS) issuances.
It said on Thursday, March 31 that PDS issuances rose due to several large issuances mainly for refinancing and working capital.
'Loans outstanding and other major loan indicators, however, moderated compared to the previous month as there were fewer working days due to the Chinese New Year holidays,' it said in its monthly Monetary and Financial Developments report for February.
BNM said broad money (M3) expanded at a more moderate annual rate of 7.9% in February.
During the month, the expansionary effects of higher credit extension by the banking system to the private sector and net foreign inflows were offset by the fund raising activities of the government.
Narrow money (M1) also expanded at a more moderate pace in February due to the return of currency to the banking system after the Chinese New Year festivities.
BNM said the banking system remained well-capitalised, with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.3% and 12.6% respectively.
The level of net impaired loans remained stable, accounting for 2.3% of net loans. Loan loss coverage was sustained at 90.5%.
BNM's international reserves stood at RM340.6 billion (US$110.4 billion) as at March 15, sufficient to finance 8.9 months of retained imports and was 4.3 times the short-term external debt.
It said on Thursday, March 31 that PDS issuances rose due to several large issuances mainly for refinancing and working capital.
'Loans outstanding and other major loan indicators, however, moderated compared to the previous month as there were fewer working days due to the Chinese New Year holidays,' it said in its monthly Monetary and Financial Developments report for February.
BNM said broad money (M3) expanded at a more moderate annual rate of 7.9% in February.
During the month, the expansionary effects of higher credit extension by the banking system to the private sector and net foreign inflows were offset by the fund raising activities of the government.
Narrow money (M1) also expanded at a more moderate pace in February due to the return of currency to the banking system after the Chinese New Year festivities.
BNM said the banking system remained well-capitalised, with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.3% and 12.6% respectively.
The level of net impaired loans remained stable, accounting for 2.3% of net loans. Loan loss coverage was sustained at 90.5%.
BNM's international reserves stood at RM340.6 billion (US$110.4 billion) as at March 15, sufficient to finance 8.9 months of retained imports and was 4.3 times the short-term external debt.
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