KUALA LUMPUR: Broad money, or M3, the measurement of money supply, grew 6.9 per cent in February, mainly driven by the extension of credit to the private sector by the banking system.
The expansion, however, was partially offset by a decline in net foreign assets following net external outflows during the month, Bank Negara Malaysia said in a statement, in releasing its monetary and financial developments for January. Net financing to the private sector grew at a stable pace of 7.9 per cent in February amid higher growth of outstanding banking system loans and a moderation in the growth of net issuances of private debt securities.
The central bank said outstanding business loans registered a higher annual growth rate with an expansion in loans to the transport, storage and communication, finance, insurance and business services.
It said outstanding household loans also increased at a stable rate of 9.7 per cent despite loan applications and approvals moderated relative to the previous month, reflecting the fewer working days due to several public holidays during the month.
Meanwhile, the banking system remained well-capitalised with the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio at 12.6 per cent, 13.3 per cent and 15.3 per cent respectively.
The level of net impaired loans remained stable at 1.3 per cent of net loans, while the loan loss coverage ratio remained above 90 per cent. -- BERNAMA