M3 grew at a faster pace in October

  • Business
  • Thursday, 26 Nov 2009

KUALA LUMPUR: Broad money (M3) grew at a faster annual pace of 9.2% in October, Bank Negara said in its latest Monetary and Financial Developments report yesterday.

It said that on a monthly basis, M3 increased by RM7.9bil due to increased government spending and higher financing of the private sector from the banking system.

“The expansion in broad money, however, was partially offset by a decline in the net foreign assets of the banking institutions,” it said.

The central bank also said the banking system’s capitalisation remained strong with the risk-weighted capital ratio and core capital ratio at 14.5% and 13% respectively.

The net non-performing loan (NPL) ratio remained stable at 2.1%, while the aggregate loan loss coverage ratio was above 90%.

Bank Negara said total deposits placed with the banking system in October declined marginally by RM600mil from the preceding month (September: +RM9.7bil).

“The small decline in deposits during the month mainly reflected withdrawal of maturing negotiable instrument of deposits placed by banking institutions,” Bank Negara said.

Meanwhile, in the equity market, funds raised amounted to RM371mil, while in the public sector, funds amounting to RM8bil were raised through the issuance of a 10.5-year government Investment Issues and the re-opening of the five-year Malaysian government securities. – Bernama

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