Slight moderation in credit extended
STAFF REPORTER
The growth of private-sector credit extended moderated at the end of October 2017, decreasing slightly by 0.2 percentage points to end the month of at 5.2% according to the latest money and banking statistics released by the Bank of Namibia.
Growth in total credit extended to businesses continued its downward trend, as businesses continued to reduce their demand for short-term debt during October 2017.
“Annual growth in credit extended to businesses moderated from 2.4% at the end of September 2017 to 2.2% at the end of October 2017. The weak growth was reflected in most credit categories, driven by a decrease in the demand for short-term debt facilities,” the central bank said.
On a monthly basis, overdrafts extended to businesses fell by 4.9 percentage points to reach 5%, while other loans and advances contracted from a growth of 3% to 1.6% at the end of the month under review.
Annual growth in broad money supply (M2) slowed at the end of October 2017. The annual growth in M2 slowed to 8.8% at the end of October 2017, from 9.2 percent in September 2017.
The overall liquidity position of commercial banks moderated during October 2017. The overall liquidity position of the banking industry declined on a monthly basis, by N$701.1 million to N$2.9 billion during October 2017. The overall liquidity position declined to N$2.9 billion at the end of October 2017, from N$3.5 billion at the end of September 2017.
“The decrease in the overall liquidity position was as a result of cross border payments done during the month under review. The October 2017 average liquidity position was about N$1.7 billion higher than the N$1.1 billion average balance recorded in October 2016,” the central bank said.
Namibia’s overall inflation decreased to 5.2% during October 2017. The annual inflation rate slowed during October 2017 by 0.4 percentage points.
The stock of foreign reserves rose slightly at the end of October 2017.
“The level of international reserves rose to N$31.6 billion at the end of October 2017, from N$31.4 billion at the end of September 2017. The increase in the level of reserves was mainly due to inflows from Southern African Customs Union receipts,” the central bank said.
The growth of private-sector credit extended moderated at the end of October 2017, decreasing slightly by 0.2 percentage points to end the month of at 5.2% according to the latest money and banking statistics released by the Bank of Namibia.
Growth in total credit extended to businesses continued its downward trend, as businesses continued to reduce their demand for short-term debt during October 2017.
“Annual growth in credit extended to businesses moderated from 2.4% at the end of September 2017 to 2.2% at the end of October 2017. The weak growth was reflected in most credit categories, driven by a decrease in the demand for short-term debt facilities,” the central bank said.
On a monthly basis, overdrafts extended to businesses fell by 4.9 percentage points to reach 5%, while other loans and advances contracted from a growth of 3% to 1.6% at the end of the month under review.
Annual growth in broad money supply (M2) slowed at the end of October 2017. The annual growth in M2 slowed to 8.8% at the end of October 2017, from 9.2 percent in September 2017.
The overall liquidity position of commercial banks moderated during October 2017. The overall liquidity position of the banking industry declined on a monthly basis, by N$701.1 million to N$2.9 billion during October 2017. The overall liquidity position declined to N$2.9 billion at the end of October 2017, from N$3.5 billion at the end of September 2017.
“The decrease in the overall liquidity position was as a result of cross border payments done during the month under review. The October 2017 average liquidity position was about N$1.7 billion higher than the N$1.1 billion average balance recorded in October 2016,” the central bank said.
Namibia’s overall inflation decreased to 5.2% during October 2017. The annual inflation rate slowed during October 2017 by 0.4 percentage points.
The stock of foreign reserves rose slightly at the end of October 2017.
“The level of international reserves rose to N$31.6 billion at the end of October 2017, from N$31.4 billion at the end of September 2017. The increase in the level of reserves was mainly due to inflows from Southern African Customs Union receipts,” the central bank said.
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