Diamond sales drive commercial banks liquidity
Featured

16 November 2018
Author  
The overall liquidity position of commercial banks improved during September, Money and Banking Statistics released by the Bank of Namibia has shown. 
The central bank said the liquidity position of commercial banks improved from N$ 4.4 billion to N$ 4.8 billion at the end of September.
“The increased balance was mainly driven by an increase in diamond sales during the month under review,” the central bank said.
Growth in private sector credit extension (PSCE) remained unchanged at the end of September.
The annual growth in PSCE stood at 6.6 percent at the end of September, maintaining the same rate as in August.
The central bank said the annual growth in broad money supply (M2) rose slightly at the end of September. The 12-month growth in M2 rose to 8.2 percent at the end of September, from a growth of 8 percent in August.
“The growth in M2 was mainly driven by the growth in domestic claims as primarily, reflected in the steady growth in private sector credit extension coupled with an increased growth in other deposits held by private corporations.”
The annual inflation rate rose to 4.8 percent in September, higher than the 4.4 percent recorded in the previous month.
Growth in total credit extended to businesses continued an upward trend during September. The annual growth in credit extended to businesses stood at 6 percent at the end of September, compared to 5.2 percent at the end of the preceding month.
“The increased growth was driven by an increased demand for commercial property mortgages coupled with an increased demand for overdraft credit, and other loans and advances credit during the reviewed period.”
Credit extended to the household sector slowed at the end of September.  Total credit extended to the household sector slowed to 6.9 percent during September, from 7.5 percent reported at the end of August.
“The reduced growth in credit extended to the household sector was underpinned by the lower uptake of mortgage credit coupled with the continued contractions in instalment credit during the month under review.”
 
 
 
 
 
614 Views
K2_TAGGED

WINDHOEK OBSERVER

The Windhoek Observer is an English-language weekly newspaper, published in Namibia by Paragon Investment Holding. It is the country's oldest and largest circulating weekly.

Contact Us

Windhoek Observer House
c/o John Meinert & Rossini Street
Windhoek West
Namibia
Tel: +264 61 411 800
Fax: +264 61 226 098
www.observer.com.na