Money changer worker Mariam Beebi Shaik Uduman,33 counting the dollar using the bank note machine at the Central Market money changer in Kuala Lumpur, yesterday. The Ringgit is spreading thinner after breaching the RM4.00 mark against the US dollar the lowest level since September 1998. MUHAMAD SHAHRIL ROSLI/SThe Star. (Stand Alone)
KUALA LUMPUR: Broad money (M3) growth increased by 2.7% in February, driven mainly by the extension of credit to the private sector by the banking system, said Bank Negara Malaysia (BNM).
The expansion, however, was partially offset by the decline in net foreign assets, said the central bank in its Monetary and Financial Developments report released on Thursday.
In January, the M3 grew by 2.2%.
BNM said Malaysia’s banking system remained well-capitalised with the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio at 12.7%, 13.7% and 16.3% respectively.
“The slight decline in capital ratios reflected seasonal dividend payments by a number of banking institutions.
“The level of net impaired loans was sustained at 1.2% of net loans, with loan loss coverage ratio stable at 92.8%,” it said.
The central bank said interbank rates of all tenures continued with their moderate trend in February following the decision on Jan 21, 2016 to reduce the statutory reserve requirement by 50 basis points.
The average base rate of commercial banks increased marginally to 3.88% last month against 3.87% recorded in January, reflecting the earlier increase in the Kuala Lumpur Interbank Offered Rates towards end-2015. - Bernama
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