Malaysia April M3 money supply up 14.2 pct vs 12.8 pct in March - central bank

Malaysia April M3 money supply up 14.2 pct vs 12.8 pct in March - central bank
31/05/2007 10:31:00
KUALA LUMPUR (XFN-ASIA) - The broad M3 measure of money supply expanded by 14.2
pct in April from a year earlier against a rise of 12.8 pct in March , the
central bank said.
Narrow money, or M1, increased at an annual rate of 17.9 pct in April,
unchanged from March, due to higher placements of demand deposits by business
enterprises.
"The increase in M3 reflected the increase in net foreign assets as well as the
higher loans outstanding and holdings of securities by banking institutions," it
said in a statement.
On a month-on-month basis, the increase in net foreign assets is the major
contributor to the expansion in M3, reflecting higher international reserves and
net foreign assets of the banking institutions.
"Claims on the private sector were also expansionary on account of higher loans
outstanding and holdings of securites by the banking institutions.
"Government operations however, were contractionary on M3 as the government
deposited the proceeds from the issuance of Malaysian Government Securities with
Bank Negara," it added.
The banking system's capitalisation remained strong with the risk-weighted
capital ratio at 13.1 pct.
The net NPL ratio improved further to 4.4 pct due mainly to recoveries and
conitnued write-offs by banking institutions.
Total deposits with the banking system increased by 4.3 bln rgt in April
against 3.8 bln rgt in March or 18.3 pct on an annual basis against 18 pct in
March.
The expansion mainly reflected higher deposit placements by businesses and
individuals, which was partly offset by lower deposits among financial
institutions.
Total loans outstanding expanded by 6.2 pct on an annual basis as at end-April,
unchanged against the growth seen at end-March.
Loans outstanding to businesses and households expanded at annual growth rates
of 5.8 pct and 7.9 pct against 6.3 pct and 7.8 pct in March, respectively.
The ringgit appreciated against the US dollar by 2.0 pct, the yen by 5.3 pct
and the euro by 1.1 pct between April 1 and May 28.


Source: Osk Wirenews