{"id":16930,"date":"2018-04-30T16:43:07","date_gmt":"2018-04-30T14:43:07","guid":{"rendered":"http:\/\/www.ijg-research.net\/?p=16930"},"modified":"2018-04-30T16:43:07","modified_gmt":"2018-04-30T14:43:07","slug":"psce-march-2018","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-march-2018\/","title":{"rendered":"PSCE \u2013 March 2018"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Overall<\/strong><\/p>\n

Private sector credit extension (PSCE) increased by N$724.8 million or 0.8% m\/m in March, bringing the cumulative credit outstanding to N$92.4 billion. On a year-on-year basis, private sector credit extension increased by 5.9% in March, increasing at a slightly quicker rate than the 5.1% recorded in February. From a rolling 12-month basis, N$5.1 billion worth of credit was extended to the private sector, compare to the previous year, the rolling 12-month issuance is down 25.4% from the N$6.8 billion observed at the end of March 2017. Of this cumulative issuance, individuals took up credit worth N$3.5 billion while N$757.9 million was issued to corporates. Claims on non-resident private sectors increased by an immense N$827.3 million, or 190.3%, y\/y.<\/p>\n

\"\"<\/a><\/p>\n

Credit extension to households<\/strong><\/p>\n

Credit extended to individuals increased by 7.0% y\/y in March, on par with the year-on-year growth recorded in February. On a monthly basis, household credit extension rose by 0.2% in March which is lower than the increase of 0.6% registered in February. Installment credit extended to households contracted by 2.7% y\/y. This contraction is in tandem with diminishing new vehicle sales reported for March since installment credit is largely used to finance vehicle purchases. The value of mortgage loans extended to individuals increased by 0.5% m\/m and 8.1% y\/y. Demand for overdraft facilities has been slowing since January on an annual basis, increasing by 2.4% y\/y in March compared to 3.4% y\/y in February. Overdraft facilities recorded a contraction in credit outstanding of 1.7% m\/m in in March.<\/p>\n

\"\"<\/a><\/p>\n

Credit extension to corporates<\/strong><\/p>\n

Credit extension to corporates contracted by 0.3% m\/m in March after increasing by 2.0% m\/m in February. On an annual basis credit extension to corporates increased 2.1% y\/y in March, similar to the rate recorded in February. Mortgage loans to corporates remained flat month-on-month, but increased 5.5% y\/y. Overdraft facilities extended to corporates increased by 2.5% m\/m and 5.8% y\/y. Installment credit extended to corporates, which has been contracting since February 2017 on an annual basis, remained depressed, contracting by 0.9% m\/m and 6.7% y\/y in March.<\/p>\n

\"\"<\/a><\/p>\n

Banking Sector Liquidity <\/strong><\/p>\n

The overall liquidity position of commercial banks increased to an average of N$3.1 billion during March, an increase of N$1.2 billion compared to the preceding month. Government payments and mineral sales proceeds of about N$1.0 billion contributed to the improved liquidity position during March 2018, according to the Bank of Namibia. Commercial banks continue to utilize BoN\u2019s repo facility, and although average repos have decreased considerably from N$603.4 million during February to N$344.5 million during March, the use of the facility suggests that some banks are facing challenges in terms of liquidity.<\/p>\n

\"\"<\/a><\/p>\n

Reserves and money supply<\/strong><\/p>\n

The stock of foreign reserves decreased by N$94.0 million to N$26.8 billion in March, the lowest level since May last year.<\/p>\n

\"\"<\/a><\/p>\n

Outlook<\/strong><\/p>\n

Growth in private sector credit extension remained static at the end of March. The Bank of Namibia announced in March that it would not follow the SARB\u2019s action to cut rates by 25 basis points, as the international reserve position has deteriorated over the last few months. We feel that should the reserve position stabilise, the Bank of Namibia would ideally like to cut rates to provide some stimulus to the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Private sector credit extension (PSCE) increased by N$724.8 million or 0.8% m\/m in March, bringing the cumulative credit outstanding to N$92.4 billion. On a year-on-year basis, private sector credit extension increased by 5.9% in March, increasing at a slightly quicker rate than the 5.1% recorded in February. From a \u2026 Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,22],"tags":[],"class_list":["post-16930","post","type-post","status-publish","format-standard","hentry","category-economicresearch","category-psce"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/16930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/comments?post=16930"}],"version-history":[{"count":1,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/16930\/revisions"}],"predecessor-version":[{"id":16937,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/16930\/revisions\/16937"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=16930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=16930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=16930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}