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Graphics (Statistics) - Deposit & loans of the banking system (May/June 1999).; A look at monetary and financial developments in June.
ACCORDING TO Bank Negara Malaysia (BN)'s Monetary and Financial Developments June 1999 report, monetary indicators pointed to the expansionary trend throughout June in line with the revival of investor and consumer confidence. Sustained increases in demand as well as the return of portfolio investment led to the third successive month of expansion in transaction balances.
Total loans outstanding, including loans sold to Cagamas and Danaharta, continued to expand further in June after recovering in May. There was substantial pick-up in loan approvals and acceleration in loan disbursements.
Money supply (M3) continued its growth trend, increasing by RM1.4 billion or 0.3 per cent in June (+RM2.5 billion or 0.6 per cent in May). As such, the annual growth of M3 at end June increased further to 7.5 per cent (7.1 per cent at end-May).
The increase in M3 reflected mainly the expansionary impact of external operations. In June, net external assets of BN and the banking system expanded by RM5.3 billion. Net international reserves of BN increased further by RM5.1 billion, reflecting mainly the proceeds of the Government Global Bond Issue (+RM3.7 billion) as well as the purchase of foreign currency from the commercial banks, arising mainly from the continued large trade surplus in the external account.
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