Broad money grows 3.0 pct in December

KUALA LUMPUR: Broad money or M3 recorded a stable annual growth of 3.0percentinDecember,compared to 2.9 per cent in November.

In a statement, Bank Negara Malaysia (BNM) said the expansion in M3 was driven mainly by the continued extension of credit to the private sector by the banking system.

The expansion, however, was partially offset by the continued growth of Islamic Investment Accounts, as reflected in other influences, and decline in net foreign assets due to net capital outflows during the month.

Net financing to the private sector registered an annual growth of 5.5 per cent in December (October: 6.7 per cent).

This was driven by the higher growth of loans extended by the banking system and development financial institutions (DFIs), amid some moderation in the growth of net outstanding corporate bonds during the month.

Outstanding business loans of the banking system recorded a higher annual growth of 5.0 per cent (November: 4.6 per cent), with growth driven by the year-on-year expansion in most major sectors.

For households, outstanding loans of the banking system grew at a slightly slower pace of 5.3 per cent in December (November: 5.4 per cent), amid sustained growth in outstanding loans for the purchase of residential property.

Overall loan demand remained stable during the month with the level of loan applications moderating slightly from both businesses and households at RM29.3 billion(November: RM29.9 billion). — Bernama