By Taonga Sabola:
This is compared to a growth of 3.9 percent (K17.5 billion) in October and a contraction of 1.8 percent in November 2017.
In its November 2018 Economic report, RBM says foreign currency denominated loans, commercial and industrial loans and mortgages grew by K4.4 billion, K1.3 billion and K1.1 billion to K133.6 billion, K204.8 billion and K41.5 billion, respectively.
The central bank says household and individual loans slowed down by K732.5 million to K120.8 billion.
RBM says commercial banks made provisions for loan losses of K4.4 billion during the month, hence total loan loss provisions stood at K34.6 billion as at end- November 2018.
“In terms of economic sectors, credit expansions amounting to K13.3 billion, K2.5 billion, and K2.5 billion were recorded in manufacturing, wholesale and retail trade, and transport, storage and communications sectors, respectively.
“Meanwhile, credit to community, personal and social services; electricity, gas, water, and energy as well as financial services and agriculture sectors contracted by K9.5 billion, K3.7 billion, K2.9 billion and K2.6 billion, respectively,” reads the report in part.
In terms of proportions in the outstanding stock of private sector credit, wholesale and retail trade sector, at 27.9 percent, continued to represent the largest share of private sector credit.
RBM says manufacturing, agriculture, and community, social and personal services sectors constituted 20.5 percent, 19.6 percent and 10.3 percent of the total outstanding credit stock, respectively.
On the other hand, the banking system’s net credit to the public sector (government and statutory bodies) totalled K685.1 billion as at end November 2018 from K613.2 billion in October 2018.
RBM says net credit to government from the RBM increased by K55.4 billion to K381.0 billion in the month.
Commercial banks outstanding credit to the statutory corporations declined by K814.6 million to K32.5 billion in the month.