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BNM: Net financing records annual growth of 6.3pct in Dec 2018

KUALA LUMPUR: Net financing recorded an annual growth of 6.3 per cent in December 2018, compared with 7.3 per cent registered in November 2018, said Bank Negara Malaysia (BNM).

“This was due mainly to a moderation in the growth of outstanding corporate bonds to 8.0 per cent against 10.5 per cent in November 2018, reflecting the high base effect in December 2017,” the central bank said in a statement today.

The central bank said outstanding business loan growth had moderated to 5.4 per cent in December 2018 (November: 6.3 per cent) mainly driven by the construction and real estate sectors, while growth in household loans was sustained at 5.6 per cent against 5.7 per cent in November 2018.

It also said that the country’s banking system capitalisation remained strong with financial institutions well-positioned to withstand severe macroeconomic and financial shocks, with excess capital buffers of RM143 billion as at December 2018.

The slight increase in capital adequacy ratios were partly attributable to an increase in ordinary shares arising from a dividend reinvestment scheme, it added.

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