April loan growth cools to 17-month low; broad money (M3) picks up steam
Broad money (M3) growth accelerated to 3.2% YoY (Mar: 2.3%), a three-month high
- Reason: The growth expansion was contributed by higher foreign currency deposits (13.3%; Mar: 8.1%), followed by demand (4.0%; Mar: 2.6%) and fixed (2.6%; Mar: 2.2%) deposits. Combined, these added 3.4 ppts to M3 growth (Mar: 2.4 ppts)
- MoM (0.5%; Mar: 0.3%): expanded to a four-month high, adding RM12.6b (Mar: RM7.1b).
Higher net claims in private sector offset weaker government activity
- Net claims on government (-1.2%; Mar: -2.5%): declined for the third straight month, due to a slowdown in government deposits (6.8%; Mar: 8.6%), though government claims (0.2%; Mar: -0.6%) rebounded marginally.
- Claims on private sector (5.0%; Mar: 4.8%): expanded to a nine month high, amid sustained loans (5.3%; Mar: 5.3%) and expansion in securities (2.7%; Mar: 1.3%).
- Net foreign assets (0.03%; Mar: -5.2%): rebounded marginally after a contraction in the previous month, thanks to a sharp rebound in net foreign assets held by the banking system (4.4%; Mar: -12.0%).
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