{"id":20341,"date":"2019-04-05T11:48:31","date_gmt":"2019-04-05T09:48:31","guid":{"rendered":"https:\/\/ijg.net\/research\/?p=20341"},"modified":"2019-04-05T11:48:31","modified_gmt":"2019-04-05T09:48:31","slug":"psce-february-2019","status":"publish","type":"post","link":"https:\/\/ijg.net\/research\/psce-february-2019\/","title":{"rendered":"PSCE \u2013 February 2019"},"content":{"rendered":"

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

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

Total credit extended to the private sector (PSCE) increased by N$606.7 million or 0.63% m\/m in February, bringing the cumulative credit outstanding to N$97.7 billion. On a year-on-year basis, private sector credit extension increased by 6.59% in February, compared to 7.16% in January. From a rolling 12-month basis, N$6.04 billion worth of credit was extended to the private sector. Of this cumulative issuance, individuals took up credit worth N$3.46 billion, while N$1.99 billion was issued to corporates. Claims on non-resident private sectors totaled N$587.4 million, on a 12-month cumulative basis.<\/p>\n

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

Credit Extension to Individuals<\/strong><\/p>\n

Credit extended to individuals increased by 6.4% y\/y in February, growing at a slightly slower pace than the 6.7% y\/y increase recorded in January. On a monthly basis, household credit grew by 0.4% following an increase of 0.3% m\/m recorded in January. Household demand for overdraft facilities was once again strong in February, increasing by 2.2% m\/m and 4.7% y\/y, compared to the 2.3% m\/m and 2.7% y\/y increase seen in January. The value of mortgage loans extended to individuals increased by 0.3% m\/m and 7.3% y\/y. Installment credit remained depressed, increasing by 1.1% m\/m, but contracting by 5.4% y\/y.<\/p>\n

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

Credit Extension to Corporates<\/strong><\/p>\n

Credit extension to corporates ticked up slightly month-on-month, increasing by 1.0% following a 0.1% increase in January. Year-on-year credit extension to corporates increased by 5.4% in February, increasing at a slower rate than the 6.3% y\/y recorded in January. The increase in overall loans to corporates was mostly driven by corporates\u2019 continued use of short-term credit facilities, in particular overdrafts, which increased by 3.7% m\/m and 13.1% y\/y. Other loans and advances, which consists of credit card debt, personal and term loans, extended to businesses increased by 26.8% y\/y, but contracted by 0.2% m\/m. Mortgage loans extended to corporates increased by a low 1.2% y\/y, but decreased by 0.7% m\/m.<\/p>\n

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

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

The overall liquidity position of commercial banks improved significantly during February, increasing by N$2.10 billion to reach an average of N$2.38 billion. Bank of Namibia credits this improvement in liquidity to higher government spending as well as higher mineral proceeds during the period. The higher liquidity resulted in a decrease in use of the BoN\u2019s repo facility by commercial banks, with the outstanding balance of repo\u2019s decreasing from N$2.29 billion at the start of February to N$645.7 million by month end.<\/p>\n

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

Reserves and Money Supply<\/strong><\/p>\n

Broad money supply rose by N$9.97 billion or 10.5% y\/y in February following a 7.6% y\/y increase in January, as per the BoN\u2019s latest money statistics release. Foreign reserve balances rose by 3.1% m\/m to N$31.6 billion in February. The BoN stated that the increase was mostly due to increased net capital inflows by commercial banks, coupled with exchange rate revaluations.<\/p>\n

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

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

Overall PSCE growth in February moderated for a third consecutive month on a year-on-year basis, increasing by 6.6%. From a 12-month rolling perspective, credit issuance is up 36.6% from the N$4.42 billion issuance observed at the end of February 2018, with individuals taking up most (57.3%) of the credit extended over the past 12 months.<\/p>\n

As has been the case for the past few months, most of the growth in PSCE for February has stemmed from shorter-dated debt, which is unlikely to drive meaningful expansion of productive capacity. Instalment credit extended to corporates, remained depressed, contracting by 9.3% y\/y in February. The persistent contraction in instalment credit to corporates (since February 2017) is a further indication that businesses are financing fewer and fewer capital goods and as such, are not expanding operations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Overall Total credit extended to the private sector (PSCE) increased by N$606.7 million or 0.63% m\/m in February, bringing the cumulative credit outstanding to N$97.7 billion. On a year-on-year basis, private sector credit extension increased by 6.59% in February, compared to 7.16% in January. From a rolling 12-month basis, N$6.04 \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-20341","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\/20341","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=20341"}],"version-history":[{"count":1,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/20341\/revisions"}],"predecessor-version":[{"id":20348,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/posts\/20341\/revisions\/20348"}],"wp:attachment":[{"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/media?parent=20341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/categories?post=20341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijg.net\/research\/wp-json\/wp\/v2\/tags?post=20341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}