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Ref. No.: 08/09/09 EMBARGO: Not for publication orbroadcast before 1800 hours onWednesday, 26 August 2009
Monetary and Financial Developments in July 2009
Highlights of the Press Release
Headline inflation declined to -2.4% in July 2009 (June: -1.4%), driven
mainly by lower energy and food prices.
Gross financing increased on a month-on-month basis due mainly to
higher loan disbursements by the banking system.
The banking system remained healthy, with the risk-weighted capital ratio
and core capital ratio remaining stable at 14.2% and 12.6%.
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Ref. No.: 08/09/09 EMBARGO: Not for publication orbroadcast before 1800 hours onWednesday, 26 August 2009
MONETARY AND FINANCIAL DEVELOPMENTS
July 2009
_______________________________________________________
Gross financing through the banking system and the capital market was higher at
RM64.2 billion (June: RM60.7 billion) mainly on account of increased loan
disbursements during the month. On a net basis, banking system loans and PDS
outstanding expanded at a higher combined annual rate of 8.3% as at end-July
(June: 8.0%). Overall, key loan indicators, namely loan applications, approvals,
disbursements and repayments, increased especially for the purchase ofresidentialand non-residential properties, passenger carsand credit cards.
Interbank rates for all maturities were relatively stable, while average fixed
deposit rates were relatively unchanged. The average base lending rate (BLR)
was unchanged at 5.53% as at 15 August, while the average lending rate (ALR)
decreased to 4.96% as at end-July (5.02% in May, 5.04% in June).
Between 1 July and 25 August 2009, the ringgit appreciated against the U.S.dollar by 0.3%. The ringgit also appreciated against the pound sterling by 1.7%,
but depreciated against Japanese yen (-1.8%) and euro (-0.7%). Against regional
currencies, the ringgit depreciated between 0.2% and 2.2%. In particular, the
Indonesian rupiah and Korean won had appreciated against the ringgit and other
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3
regional currencies as these currencies rebounded from sharp depreciation in
2008 and early 2009.
Headline inflation continued to decline to -2.4% in July 2009 (June: -1.4%),
driven mainly by lower energy and food prices. Prices in the transportcategorycontinued to decline (July: -19.9%, June: -18.0%, July 2008: +22.7%), reflecting
the cumulative effect of the series of downward adjustments to administered fuel
prices in the second half of 2008. In addition, lower inflation was observed in the
housing, water, gas, electricity and other fuelscategory (July: 1.3%, June: 2.0%),
following the lapse of the impact of the upward adjustment to electricity tariffs in
July 2008. Inflation in the food and non-alcoholic beveragescategory also
continued to moderate (July: 2.0%, June: 3.4%).
Broad money (M3) sustained an annual growth rate of 5.2% in July 2009 due to
the higher credit by banks to the private sector.
The banking system remained healthy, with the risk-weighted capital ratio and
core capital ratio remaining stable at 14.4% and 12.6%.
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Interest rates were stable in July
During the period 1 July 25 August, the daily weighted average overnight
interbank rate moved within a narrow range of 1.99% - 2.00%. Interbank rates of
other maturities were also relatively stable.
The average fixed deposit rates of commercial banks were unchanged between
July and August. As at 15 August, the average quoted fixed deposit rates for
tenures between 1 and 12 months were within the range of 2.02% and 2.52%.
In terms of the commercial banks lending rates, the average base lending rate
(BLR) was unchanged at 5.53% on 15 August, while the average lending rate
(ALR) decreased to 4.96% as at end-July (5.02% in May and 5.04% in June).
Daily Weighted Average Overnight Interbank Rate
2.25%
1.75%
25 August: 2.00%
1.6
1.9
2.2
2.5
2.8
3.1
3.4
3.7
4.0
Apr08
May08
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
May09
Jun09
Jul09
Aug09
%
Ceiling rate of the corridor for the OPR
Floor rate of the corridor for the OPR
The average overnightinterbank rate movedwithin a narrow range
Other interbank rateswere also relativelystable
Interbank Rates(Average for the period)
2.002.022.07
1.8
2.2
2.6
3.0
3.4
3.8
Jul08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
Jun09
Jul09
Aug09
%
Overnight 1-week 1-month
Average for
1 - 25 Aug 09
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Outstanding Liquidity Placed with BNM(At end-period, RM m)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Direct Borrowing and Wadiah Acceptance BNM Debt Securities Repo Others
BNM continued toabsorb excessliquidity
Commercial banks
BLR wasunchanged, whereasthe ALR decreasedto 4.96%
Lending Rates: Commercial Banks
(at end-period)
5.53
4.96
4.8
5.2
5.6
6.0
6.4
6.8
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
May09
Jun09
Jul09
Aug09
%
BLR - CB ALR - CB
15Aug09
Liquidity Situation
74.9
81.5
65
70
75
80
85
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
May09
Jun09
Jul09
%
Loan-Deposit Ratio of Banking System
Financing-Deposit Ratio (Incl. Investment in PDS)
The loan-depositand financing-deposit ratiosincreased in July, asthe growth in loansoutpaced theincrease in deposits.
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Term Structure of Fixed Deposit RatesCommercial Banks
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2.6
%
Jun 09 2.02 2.05 2.06 2.07 2.52
Jul 09 2.02 2.05 2.06 2.07 2.52
15 Aug 09 2.02 2.05 2.06 2.07 2.52
1-month 3-month 6-month 9-month 12-month
Average fixeddeposit rates wereunchanged betweenJune and 15 August
3-Month Real Commercial Banks Fixed Deposit Rates
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
May09
Jun09
Jul09
%
Real 3-M FD Rate Nominal 3-M FD Rate Inflation
Real fixed depositrates continued toincrease
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Ringgit appreciated against the U.S. dollar
Between 1 July and 25 August 2009, the ringgit appreciated against the U.S.
dollar by 0.3%. The ringgit also appreciated against the pound sterling by 1.7%,
but depreciated against Japanese yen (-1.8%) and euro (-0.7%). Against regionalcurrencies, the ringgit depreciated between 0.2% and 2.2%. In particular, the
Indonesian rupiah and Korean won had appreciated against the ringgit and other
regional currencies as these currencies rebounded from sharp depreciation in
2008 and early 2009.
Performance of Ringgit against Major Currencies(7-day moving average)
2.5
3.0
3.5
4.0
4.5
5.0
5.5
A
08
S08
O
08
N
08
D
08
J09
F09
M0
9
A
09
M0
9
J09
J09
A
09
RM/USD, Euro, Yen
4.8
5.1
5.4
5.7
6.0
6.3
6.6
RM/STG
Euro
STG (RHS)
USD
100 Yen
Performance of Ringgit against Regional Currencies(7-day moving average)
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
A
08
S08
O
08
N
08
D
08
J09
F09
M0
9
A
09
M0
9
J09
J09
A
09
RM/Rupiah, S$,
Won, Renminbi
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
RM/Baht, Peso
10,000 Rupiah
100 Baht (RHS)
1,000 Won
100 Peso (RHS)
S$
10 Renminbi
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End End
Dec 08 - Jun 09 -
25 Aug 09 25 Aug 09
US dollar 3.4640 3.5225 3.5200 3.5125
Euro 4.8759 4.9699 4.9729 5.0232
Pound sterling 4.9989 5.8592 5.8150 5.7631
100 Japanese yen 3.8327 3.6729 3.6919 3.7367
Singapore dollar 2.4070 2.4302 2.4432 2.4359
100 Thai baht 9.9398 10.354 10.342 10.326
100 Philippine peso 7.2774 7.3111 7.3249 7.2303
100 Indonesian rupiah 0.0316 0.0345 0.0355 0.0351
100 Korean won 0.2750 0.2754 0.2859 0.2816
Chinese renminbi 0.5076 0.5155 0.5152 0.5142
-9.8
-1.7
-0.2
-1.4
-2.9
-13.3
Performance of Ringgit against Selected Currencies
End-period
0.3
-1.1
1.7
-1.2
-3.7
0.7
RM per foreign currency
2.6
Jul 09Jun 09Dec 08
1.1
0.3
-1.3 0.3
-1.8
-2.2-2.3
25 Aug 09
% Change
Inflation declined in July
Headline inflation declined to -2.4% in July 2009 (June: -1.4%), driven mainly by
lower energy and food prices. Prices in the transportcategory continued to
decline (July: -19.9%, June: -18.0%, July 2008: +22.7%), reflecting the
cumulative effect of the series of downward adjustments to administered fuel
prices since in the second half of 2008. In addition, lower inflation was observed
in the housing, water, gas, electricity and other fuelscategory (July: 1.3%, June:
2.0%), following the lapse of the impact of the upward adjustment to electricity
tariffs in July 2008. Inflation in the food and non-alcoholic beveragescategory
also continued to moderate (July: 2.0%, June: 3.4%).
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Inflationdeclined to-2.4% in
July
Consumer Price Index
-2.4
2.0
-4
-2
0
2
4
6
8
10
12
14
Jan07
Mar07
May07
Jul07
Sep07
Nov07
Jan08
Mar08
May08
Jul08
Sep08
Nov08
Jan09
Mar09
May09
Jul09
Annual change (%)
Food and Non-Alcoholic Beverages
Overall
drivenmainly byprice declinesin thetransportcategory
Contribution to Consumer Price Inflation
-5 -4 -3 -2 -1 0 1 2
Total
Food and Non-Alcoholic Beverages
Housing, Water, Electricity, Gas and Other Fuels
Miscellaneous Goods and Services
Alcoholic Beverages and Tobacco
Furnishings, Househol d Equipment and Routine MaintenanceRestaurants and Hotels
Education
Health
Recreation Services and Culture
Communication
Clothing and Footwear
Transport
Percentage Points
Jul Jun
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Producer prices continued to decline in June
The Producer Price Index (PPI) continued to decline by 12.2% on an annual
basis in June (May: -10.8%). Prices in the commodity-related components of the
PPI were lower by an average of 29.9% (May: -28.2%), due to the broad-based
decline in all commodity-related components. Prices also declined at a faster rate
of 2.7% (May: -2.0%) in the non-commodity-related components of the PPI. On a
month-on-month basis, however, producer prices rose by 1.2% in June (May:
0.6%).
In terms of composition, prices in both the local and imported components of the
PPI fell at a faster rate. Compared to their levels a year ago, prices in the local
component of the PPI declined by 16.1% (May:-14.4%), while prices in the
imported component declined by 3.4% (May: -3.0%).
Producer pricesdeclined on anannual basis inJune
Producer Price Index
-12.2-15
-10
-5
0
5
10
15
20
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Annual change (%)
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M3 continued to grow in July
In July, broad money (M3) sustained an annual growth rate of 5.2%. On a
monthly basis, M3 increased by RM10.0 billion. On the domestic side, the main
impetus for the increase in broad money was higher credit by banks to the
private sector. Net claims on Government declined marginally by RM0.1 billion
due to a temporary deposit placement with Bank Negara. On the external side,
net foreign asset of the banking system increased, which exerted an
expansionary impact on broad money.
M3
Monetary Aggregates
M1: 6.0%
M3: 5.2%
3
5
7
9
11
13
15
17
Jul08
Aug
08
Sep
08
Oct08
Nov
08
Dec
08
Jan
09
Feb
09
Mar09
Apr09
May
09
Jun
09
Jul09
Annual Growth (%)
-1.2 -5.0 7.3 10.0Net claims on Government 3.9 -6.5 8.4 -0.1
s on the private sector 2.8 -2.9 8.7 8.3
Loans 3.1 -2.9 7.6 8.1
Securities -0.3 0.0 1.1 0.2
Net foreign assets* 5.8 0.6 -12.0 1.1
ther influences -13.7 3.8 2.2 0.8
* Pre-revaluation of international reserves
M3 has been revised to include other deposits from December 1999 onwards. Other deposits were
previously excluded from the compilation of M3.
M3 Determinants
(RM billion)
Change during period
May 09 Jun 09 Jul 09Apr 09
Claim
O
M1 and M3
continued to
increase on an
annual basis
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Banking system deposits increased in July
Total deposits placed with the banking system in July increased by RM0.9 billion
from the preceding month (June: RM18.2 billion) to register an annual growth
rate of 6.2% (June: 7.2%). Businesses, individuals, non-bank financial institutions
and other depositors also increased their deposits during the month. The
increase, however, was partially offset by maturing negotiable instrument of
deposits (NIDs) placed by banking institutions. By type, the increase was mainly
observed in the form of short-term money market deposits, as reflected in other
deposits.
Federal Government 300 1,505 1,739 81
State Governments 847 -1,083 561 -567
Statutory Authorities1 2,155 -2,388 1,729 28
Financial Institutions -3,854 -3,186 13,575 -6,557
of which:
Banking Institutions -677 618 8,173 -8,435
Non-Bank Financial Institutions -2,345 -3,905 5,694 1,725
Business Enterprises 182 1,682 -2,323 4,437
Individuals -1,597 -1,674 2,012 2,246
Others2 862 -103 856 1,191
Total -1,104 -5,247 18,151 859
1/ Include local Governments
2/ Consist of domestic other entities and foreign non-bank entities
Fixed deposits -6,553 2,259 -3 -3,124
NIDs -2,347 -1,694 7,849 -10,188
Demand deposits 1,904 -819 4,795 -988
Savings deposits 1,832 -1,390 1,222 752
Repos -538 -44 -26 17
FX deposits 3,134 716 -4,236 455
IBS deposits1
4,722 3,704 5,907 2,095Others
2 -3,258 -7,978 2,642 11,840
Total -1,104 -5,247 18,151 859
1/ IBS deposits refers to Islamic banking system deposits
2/ Other deposits comprised mainly of short-term money market deposits
Apr 09
(RM million)
Change during period
Jul 09Apr 09 May 09 Jun 09
Deposits by Holder(RM million)
Change during period
Deposits by Type
May 09 Jun 09 Jul 09
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Demand for financing continued to increase
Gross financing through the banking system and the capital market was higher at
RM64.2 billion (June: RM60.7 billion) driven mainly by the increase in loan
disbursements during the month. On a net basis, banking system loans and PDS
outstanding expanded at a higher combined annual rate of 8.3% as at end-July
(June: 8%).
Gross Private Sector Financing through the Banking System
and Capital Market
64.260.7
53.7
69.0
62.3
20
30
40
50
60
70
80
Mar 09 Apr 09 May 09 Jun 09 Jul 09
RM billion
Loan disbursements Gross PDS Equity1
1 Exclude foreign issuances
Higher gross financingdriven by loandisbursements
Loan Applications, Approvals, Disbursements and Repayments
(RM billion)
60.9
50.9
51.1
27.3
5
10
15
20
25
30
35
40
45
50
55
Mar 09 Apr 09 May 09 Jun 09 Jul 09
Applications,
Approval
5
15
25
35
45
55
65
Disbursements,
Repayments
Major loan indicatorsincreased in July
Disbursements Repayments Applications Approvals
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Jun-09 Jul-09 J-J 09 Jun-09 Jul-09 J-J 09
Overall
Loan applications 50.6 51.1 297.7 18.3 18.5 5.7
Loan approvals 27.2 27.3 163.2 10.2 4.5 -8.4
Loan disbursements 54.9 60.9 362.9 0.7 5.6 -2.4
Chg in Loans Outstanding1/
7.6 9.8 26.0 8.3 8.4 8.4
Businesses
Loan applications 25.2 23.7 140.0 16.7 14.3 -0.3
Loan approvals 12.6 11.9 72.7 6.4 2.6 -19.8
Loan disbursements 38.0 41.3 244.8 -4.0 -1.2 -7.2
Chg in Loans Outstanding1/
2.6 3.3 1.1 3.7 3.2 3.2
SMEs2/
Loan applications 10.1 10.2 56.5 12.0 6.2 -8.1
Loan approvals 3.9 4.2 24.3 -29.2 -28.1 -29.5
Loan disbursements 12.5 12.8 82.1 -12.5 -12.7 -13.7
Chg in Loans Outstanding1/3/
0.9 1.0 -5.3 -2.9 -3.1 -3.1
Households
Loan applications 25.4 27.4 157.7 19.8 22.4 11.7
Loan approvals 14.6 15.4 90.5 13.6 6.1 3.4
Loan disbursements 16.9 19.6 118.1 13.2 23.3 9.5
Chg in Loans Outstanding1/
3.4 3.2 18.3 9.1 9.0 9.01/
The annual growth in outstanding amount as at end-period.
3/The decline in SME loans outstanding partly reflected the exclusion of a number of companies from the SME
classification, as they have grown beyond the definition of SME. Without such exclusion, SMEs loans outstanding
would have expanded by 0.2% year-on-year as at end-July 2009.
2/Include loans to individual businesses.
Bank lending indicators
RM billion Annual Growth (%)
mainly attributable tothe household sector
Loan Disbursements by Sector
11.0 10.1 9.4 11.4 11.4
8.9 8.6 7.99.0 9.5
5.73.8 4.3
5.7 5.4
3.1
7.45.6
4.0
5.5 10.6
16.716.9
17.3
16.9
19.6
5.1
2.53.62.9
0
10
20
30
40
50
60
70
Mar 09 Apr 09 May 09 Jun 09 Jul 09
RM billion
Manufacturing Wholesale & retail trade, restaurants & hotels
Construction & real estate Finance, insurance and business services
Others Households
Loan disbursementsremained broad-based
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Demand for financing continued to improve in July. The household sector
registered higher loan applications and approvals, mainly for the purchase of
residentialand non residential properties, passenger carsand credit cards. Loan
disbursements have also increased, leading to a further expansion of household
loans outstanding by an annual rate of 9% in July (June: 9.1%).
The demand for financing by the business sector during the month was
accounted mainly by the manufacturingand wholesale, retail trade, restaurants
and hotelssectors. Notwithstanding a large loan disbursed to the electricity, gas
and water supplysector during the month, loan disbursements remained broad
based. Higher loan disbursements had increased the business loans outstanding
by RM3.3 billion on a month-on-month basis. On an annual basis, business loans
outstanding grew at a more moderate rate of 3.2% in July (end-June: 3.7%).
Active fund raising activity in the capital market
Net funds raised in the capital market amounted to RM10.5 billion in July (June:
RM12.3 billion). The public sector raised funds totalling RM9.5 billion through the
issuance of a 5-year Government Investment Issues (GII) and the re-opening of
a 10-year Malaysian Government Securities (MGS). Meanwhile, gross funds
raised by the private sector through issuances of private debt securities (PDS)
amounted to RM3.2 billion. The bulk of PDS issuances were raised by firms in
the finance, insurance, real estate and business services as well as the transport,
storage and communications sectors. Funds were utilised mainly for working
capital. After adjusting for redemptions, net funds raised in the PDS market
totalled RM1.5 billion.
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Net Funds Raised in th e Capit al Market
12,261
9,473
2,789
10,457
9,521
936 875
551
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Total Funds Total Public Total Privat ate (PDS) 1/
238 60
2,
e Private (Equity) Priv
Jun-2009 Jul-2009
RM million
1/ Including Cagamas Bonds
KLCI strengthened further in July
The FBM KLCI continued to trend upward in July to close at 1,174.9 (end-June:
1,074.3 points). It rose on positive sentiments due to the sustained increase in
crude palm oil prices and investors optimism over the prospects for global
economic recovery. Market capitalisation increased to RM885.8 billion (since
end-June: +8.3%). However, the daily average turnover declined to 1,002 million
units (June: 1,666 million units).
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KLCIstrengthenedfurther in July
Performance of Selected Indices
25
35
45
55
65
75
85
95
105
115
2-Jan
23-Jan
15-Feb
6-Mar
26-Mar
15-Apr
6-May
27-May
16-Jun
4-Jul
24-Jul
13-Aug
2-Sep
22-Sep
14-Oct
3-Nov
21-Nov
12-Dec
5-Jan
23-Jan
18-Feb
10-Mar
30-Mar
17-Apr
8-May
28-May
17-Jun
7-Jul
27-Jul
14-Aug
2Jan2008=1
00 Malaysia
Dow Jones
Hong KongSingapore
Korea
Thailand
20092008
25-Aug
As at 25 August, the FBM KLCI ended lower at 1,171.1 (since end-July: -0.3 %).
Overall market capitalisation rose to RM889 billion (since end-July: +0.4%) and
trading activity was marginally lower with a daily average turnover of 982.7
million units.
Internationalreserves
The net international reserves of Bank Negara Malaysia amounted to RM321.5
billion (equivalent to USD91.2 billion) as at 31 July 2009. As at 14 August 2009,
the international reserves amounted to RM322.2 billion (equivalent to USD91.4
billion). The reserves position is sufficient to finance 9 months of retained imports
and is 3.8 times the short-term external debt.
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Net International Reserves(as at end month)
0
20
40
60
80
100
120
Jan08
Feb08
Mar08
Apr08
May08
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
Mar09
Apr09
May09
Jun09
Jul09
14Aug09
USD billion
0
2
4
6
8
10
12
Months / Times
Reserves (USD billion equivalent, LHS)
Import cover (months, RHS)
Reserves / Short-term External Debt (times, RHS)
9 months
3.8 times
USD91.4 billion
Note: With effect from end-March 2008, the short-term external debt refers to the external debt under the new
definition, with offshore entities in Labuan IBFC being treated as residents
Strong capitalisation and stable non-performing loans in the banking
system
The level of capitalisation for the banking system remained sound, with the risk
weighted capital ratio (RWCR) and core capital ratio (CCR) improving to 14.2%
and 12.6% respectively. In July 2009, aggregate capital base had increased by
1.3% as a result of capital raising exercise by two banking institutions.
Meanwhile, the net non-performing loans ratio improved to 2.1%, as non-
performing loans turned lower. Absolute NPLs also continue to be on a reducing
trend mainly on account of lower new NPLs. The aggregate loan loss coverage
ratio strengthened to 92%.
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2002 2003 2004 2005 2006 2007 2008 May 09 Jun 09 Jul 09
Capital (%) **
Core capital ratio 11.1 11.1 11.4 10.7 10.7 10.2 10.6 12.3 12.4 12.6
RWCR 13.2 13.8 14.4 13.7 13.5 13.2 12.6 14.2 14.1 14.2
Net NPLs
(3-month classification)
% of net total loans 10.2 8.9 7.5 5.8 4.8 3.2 2.2 2.2 2.2 2.1
Amount (RM million) 43,110 40,013 36,668 31,332 27,360 20,011 15,889 15,934 15,692 15,073
General Provisions / Net total loans
(3-month, %) 2.1 2.0 1.9 1.8 1.7 1.7 1.7 1.7 1.7 1.7
* Figures include Islamic banks.
** Beginning January 2008, RWCR and CCR are computed based on Basel II for banking institutions that have adopted the standardised approach
Banking System Health Indicators *
Capital Strength Indicators
Oct
07
Jan
08
Apr
08
Jul
08
Oct
08
Jan
09
Apr
09
Jul
09
8
9
10
11
12
13
14
15
Jul
07
%
Core Capital Ratio RWCR
14.2%
12.6%
Banking System: Net NPLs and General Provisions
and Generalions (RM b)
2
4
6
8
10
(%) Net NPL Ratio Bankingsystemcapitalisationremainedstrong
0
5
10
15
20
25
30
Jul07
Oct07
Jan08
Apr08
Jul08
Oct08
Jan09
Apr09
Jul09
Net NPLsProvis
0
General Provisions Net NPLs (Net NPL Ratio (RHSNet NPL Ratio (RHS)
* based on 3-month classification policy
whileNPLsremained ata low level
Bank Negara Malaysia26 August 2009
7/30/2019 Financial developments
20/20
20
Outs. Ann. growth Outs. Ann. growth Outs. Ann. growth
(RM b) (%) (RM b) (%) (RM b) (%)
Reserve money 54.7 -18.8 54.7 -19.9 52.1 -21.8
M1 186.2 9.3 185.6 5.5 185.8 6.0
M2 913.0 5.3 922.7 6.3 932.7 5.8
M3 943.1 4.9 950.5 5.7 960.5 5.2
Total deposits 979.5 5.6 997.7 7.2 998.5 6.2
Total loans
(including loans sold to Cagamas)735.2 8.9 742.8 8.3 752.5 8.4
Loan-deposit ratio (%)
Financing-deposit ratio1
(%)
Loans applied (during the period) 45.7 12.8 50.6 18.3 51.1 18.5
Loans approved (during the period) 25.6 -2.3 27.2 10.2 27.3 4.5
Loans disbursed (during the period) 47.1 -10.5 54.9 0.7 61.8 7.0Loans repaid (during the period) 49.9 14.9 49.2 7.3 50.9 3.8
Risk-weighted Capital Ratio (RWCR) (%) 14.2
Net NPLs: 3-month classification (%) 2.2
Net Reserves in RM billion
Net Reserves in USD billion (equivalent)
Months of retained imports
Overnight Policy Rate (OPR)
Interbank: Overnight 1.99 [2.00] 1.99 [2.00] 1.99 [2.00]
1-week 2.03 [2.02] 2.02 [2.02] 2.01 [2.02]
1-month 2.06 [2.06] 2.09 [2.07] 2.11 [2.07]
Fixed deposits of commercial banks: 1-month3-month
BLR of commercial banks
ALR of commercial banks
Consumer Price Index (CPI) (2005=100) 111.7 2.4 111.8 -1.4 111.9 -2.4
Producer Price Index (PPI) (2000=100) 129.7 -10.8 131.2 -12.2 n.a. n.a.
US dollar
Euro
Pound Sterling
100 Japanese yen
Singapore dollar
100 Thai Baht
100 Philippine Peso100 Indonesian Rupiah
100 Korean Won
Net funds raised (in RMb) by: public
private
Bursa Malaysia Composite Index (end-period)
Bursa Malaysia Market Capitalisation (RMb, end-period)
1Refers to the ratio of loans and holdings of PDS by the banking system to deposits of the banking system.
1,075.2
817.9
2.8
Monetary Aggregates
0.0355
885.8
0.2859
9.5
0.9
1,174.9
Key Monetary and Financial Statistics
Banking System
Banking System Health
May 09 Jun 09 Jul 09
78.678.3 78.3
Capital Market
9.5
85.5
2.1
85.6 85.4
14.1
2.2
14.2
88.3
322.8
91.5
322.4
91.2
321.5
8.8 9.0
2.052.02
8.9
Interest Rates at end-period [average for the month]
2.00 2.00 2.00
2.02
0.2754
5.8592
5.53 5.53
Exchange Rates of Ringgit against Selected Currencies (end-period)
Prices
5.02
5.53
5.8150
3.5225
2.042.022.05
5.04
4.9699
4.96
3.5200
4.9729
0.0345
3.6729
2.4432
3.6919
10.354
7.3249
10.342
2.4302
7.3111
1,044.1
797.8
13.7
2.9
0.2783
3.5075
4.9047
5.5995
3.6415
2.4182
10.202
7.3850
0.0339
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