Overall liquidity in commercial banks decreases significantly during January
The overall liquidity position of the banking industry decreased by N$1.2 billion on a monthly basis, to N$1.9 billion during January.
This was announced by the Bank of Namibia in the Money and Banking Statistics January 2018 report.
The central bank stated that the decrease in the overall liquidity position was seasonal as a result of large corporate tax payments made to the government during the month under review.
Furthermore, the report indicated that the annual growth in Private Sector Credit Extension (psce) rose to 5.7% at the end of January 2018 from 5.1% at the end of December 2017. The higher growth in psce was driven by an increase in demand for credit from both individuals and businesses, reflected in the increased demand for short term credit facilities.
The increase in psce was mainly driven by an increase in the categories other loans and advances and overdrafts at the end of January.
Growth in total credit extended to businesses rose during the period under review. The annual growth in credit extended to businesses rose to 3.2% at the end of January compared to 2.7% at the end of December 2017.
Similarly, growth in total credit extended to individuals increased at the end of January. Year-on-year, growth in credit extended to individuals rose to 7.4% from 6.7% recorded in the previous month.
Meanwhile, the country’s overall inflation rate decelerated to 3.6% during January, mainly driven by reduced inflation in the housing category.