By Taonga Sabola:
This is compared to a growth of K7.7 billion and K7.8 billion in September 2018 and October 2017, respectively.
The Reserve Bank of Malawi (RBM) says in its October Economic Report that commercial and industrial loans and household loans grew by K18.6 billion and K2.2 billion to K203.5 billion and K121.6 billion, respectively.
However, mortgages and foreign currency denominated loans contracted by K1.6 billion and K1.2 billion to K40.5 billion and K129.3 billion in the month, respectively.
“In terms of economic sectors, credit expansions amounting to K12.0 billion, K11.1 billion, K5.0 billion and K3.8 billion were recorded in the wholesale and retail trade; community, social and personal services; real estate; and transport, storage and communication sectors, respectively.Advertisement
“Meanwhile, credit to the manufacturing; construction; electricity, gas, water, and energy; and agricultural sectors contracted by K7.7 billion, K4.1 billion, K1.7 billion and K1.4 billion in the month, respectively,” RBM says.
In terms of proportions in the outstanding stock of private sector credit, wholesale and retail trade sector, at 27.3 percent, continued to represent the largest share of private sector credit.
Agriculture, manufacturing, and community, social and personal services sectors claimed 20 percent, 17.6 percent and 12.3 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 K613.2 billion as at end October 2018 from K579.9 billion and K495.0 billion in September 2018 and October 2017, respectively.
“Net credit to government from the monetary authorities increased by K45.8 billion to K325.5 billion in the month, mainly following a rise in Ways and Means advances. Ways and Means advances grew by K40.0 billion from K1.5 billion recorded in the preceding month.
“Furthermore, Treasury note holding by RBM grew by K3.4 billion to K341.7 billion in the month while government deposits with the central bank decreased by K1.7 billion to K150.9 billion,” RBM says.