Financial developments

7/30/2019 Financial developments

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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 No.: 08/09/09 EMBARGO: Not for publication orbroadcast before 1800 hours onWednesday, 26 August 2009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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2

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 No.: 08/09/09 EMBARGO: Not for publication orbroadcast before 1800 hours onWednesday, 26 August 2009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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4

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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5

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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6

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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7

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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8

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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9

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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10

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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11

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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12

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)


Jul 09Apr 09 May 09 Jun 09

Deposits by Holder(RM million)


Deposits by Type

May 09 Jun 09 Jul 09


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13

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


Applications,

Approval

5

15

25

35

45

55

65

Disbursements,

Repayments

Major loan indicatorsincreased in July

Disbursements Repayments Applications Approvals


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14

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


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


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


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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15

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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16

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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17

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.


18/20

18

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%.


19/20

19

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


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

Financial developments

Documents

Transcript of Financial developments