Malaysian M3 Broad Money Increases In August

Sep 28, 2007 - Malaysia's broad money, or M3, grew at an annualized rate of 11.8% percent in August, Bank Negara Malaysia said Friday. In July, M3 increased by 13.4%.

The central bank data showed that the M3 expanded mainly on account of higher claims on the private sector, supported by higher loans extended, as well as the holdings of private debt securities by the banks.

At the same time, narrow money, or M1, increased 17.8% due to higher currency in circulation and placements of demand deposits.

The central bank said in a statement that the gross financing to the private sector remained strong amid robust growth in the banking system loan disbursements in August.

Also, major loan indicators for the business and household sectors continued positive growth through August.

Meanwhile, the net NPL ratio of banking institutions improved further to 3.6% in the month of August.