• Broad money (M3) grew slightly higher in July

• Loan growth was stable on yearly basis

• Loan application spiked

• Loan approval rate decreased

• Impaired loan growth marginally higher

• Money supply and loan growth to pick up in 2017

Broad money (M3) grew 4.8% in July from 4.3% posted in the previous month. Fixed deposit, which contributed 47.4% to the total broad money, rose 3.4% in July. Demand deposit and saving deposit were also improved in July by 10.9% (Jun: 8.9%) and 7.1% (Jun: 6.8%) respectively. However, negotiable instruments of deposit (NID) dropped further to -11.9% in July as compared to -2.7% recorded in June. On monthly basis, the growth was relatively stable at -0.3% (Jun: -0.4%) or declined by RM5.5bn.

The narrow money supply or M1 accelerated to 10.9% yoy or RM38.5bn in July as compared to 9.3% recorded in the preceding month.

Source: BIMB Securities Research - 5 Sept 2017