KUALA LUMPUR (March 30): Malaysia’s banking system remained well-capitalised in February with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.8% and 13% respectively.
In its monetary and financial development report for February, Bank Negara Malaysia (BNM) said on Friday net impaired loans remained stable and represented 1.9% of net loans. Loan loss coverage remained high at 97.5%.
BNM said its international reserves were RM427 billion (US$134.8 billion) as at March 15, 2012, sufficient to finance 9.7 months of retained imports and were 4.1 times the short-term external debt of the country.
Broad money (M3), on an annual basis, expanded at a higher rate of 15.9% in February to RM1.275 trillion outstanding versus 14.7% or RM1.271 trillion outstanding in January.
“The increase during the month was due to higher credit extended by banks to the private sector and foreign capital inflows,” it said.
The central bank noted that net financing to the private sector grew at a sustained pace.
Net financing in February rose to RM1.354 trillion from RM1.344 trillion in January and RM1.324 trillion in December, 2011. The net financing comprised of banking system loans outstanding and private debt securities outstanding but excluded non-resident and Cagamas.
Outstanding banking system loans to businesses increased at a steady pace mainly supported by lending to the CONSTRUCTION [], manufacturing and real estate sectors.
While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for the purchase of residential and non-residential PROPERTIES [] and credit for personal use. Loan demand during the month remained high.
BNM data showed that loans applied in February totalled RM57.6 billion, compared with RM56.8 billion in January and RM63.5 billion in December 2011.
Loans approved in February totalled RM25 billion (January: RM26.7 billion; December 2011: RM34.7 billion). Loans disbursed totalled RM68 billion in February (January: RM69.7 billion; December 2011: RM83.7 billion). Loans repaid declined in February to RM65.8 billion (January: RM74.2 billion; December RM70.2 billion).
In its monetary and financial development report for February, Bank Negara Malaysia (BNM) said on Friday net impaired loans remained stable and represented 1.9% of net loans. Loan loss coverage remained high at 97.5%.
BNM said its international reserves were RM427 billion (US$134.8 billion) as at March 15, 2012, sufficient to finance 9.7 months of retained imports and were 4.1 times the short-term external debt of the country.
Broad money (M3), on an annual basis, expanded at a higher rate of 15.9% in February to RM1.275 trillion outstanding versus 14.7% or RM1.271 trillion outstanding in January.
“The increase during the month was due to higher credit extended by banks to the private sector and foreign capital inflows,” it said.
The central bank noted that net financing to the private sector grew at a sustained pace.
Net financing in February rose to RM1.354 trillion from RM1.344 trillion in January and RM1.324 trillion in December, 2011. The net financing comprised of banking system loans outstanding and private debt securities outstanding but excluded non-resident and Cagamas.
Outstanding banking system loans to businesses increased at a steady pace mainly supported by lending to the CONSTRUCTION [], manufacturing and real estate sectors.
While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for the purchase of residential and non-residential PROPERTIES [] and credit for personal use. Loan demand during the month remained high.
BNM data showed that loans applied in February totalled RM57.6 billion, compared with RM56.8 billion in January and RM63.5 billion in December 2011.
Loans approved in February totalled RM25 billion (January: RM26.7 billion; December 2011: RM34.7 billion). Loans disbursed totalled RM68 billion in February (January: RM69.7 billion; December 2011: RM83.7 billion). Loans repaid declined in February to RM65.8 billion (January: RM74.2 billion; December RM70.2 billion).
