Net financing up slightly in November, says BNM
KUALA LUMPUR: Net financing growth increased slightly to 7.3 per cent in November due mainly to higher growth in outstanding banking system loans of 6.2 per cent, said Bank Negara Malaysia (BNM).
The central bank said business financing remained strong, with a higher outstanding loan growth of 6.3 per cent, driven mainly by the wholesale and retail trade, restaurants and hotels; construction and manufacturing sectors.
“Growth in outstanding corporate bonds remained healthy at 10.5 per cent and household loans moderated slightly to 5.7 per cent,” it said in a statement yesterday.
The banking system asset quality remains sound as there was marginal improvement in banks’ asset quality. However, net impaired loans ratio remained unchanged at 0.9 per cent.
Banks also continued to maintain sufficient buffers against potential credit losses with total provisions to total loans ratio sustained at 1.5 per cent.
Meanwhile, headline inflation declined to 0.2 per cent in November due mainly to transport inflation which reflected the base effect.
“Excluding the impact of changes in consumption tax, core inflation remained broadly stable at 1.6 per cent,” it added.
Export growth accelerated to 17.7 per cent in October due to strong growth in manufactured and commodity exports.
“Going forward, export growth is expected to register more moderate growth in line with lower global trade activity and normalisation in re-exports,” said the central bank.
Meanwhile, domestic financial markets remained orderly amid continued portfolio outflows.
“In November, domestic financial markets continued to record non-resident portfolio outflows, due mainly to uncertainties surrounding external developments,” said the central bank.
BNM said the ringgit depreciated by 0.1 per cent amid non-resident portfolio outflows, driven mainly by risk-off investor sentiments due to concerns over escalating global trade tensions and expectations over future interest rate hikes in the United States . — Bernama