Corporate Financing and New Loan Disbursements Increasing

The latest Bank Financing Supply and Demand Survey indicates increasing corporate financing in December 2023, as reflected by a higher Weighted Net Balance (WNB) of 18.4% in the reporting period compared to 14.9% in November 2023.

 

This was primarily driven by stronger demand in the manufacturing industry and trade sector. Corporate demand for financing was mainly sourced from internal funds, followed by committed undisbursed loans and financing from domestic banks.

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New loan disbursements by the banking industry also accelerated in December 2023, as confirmed by a bump in the corresponding WNB to 73.3% from 70.4% one month earlier.  The main factors affecting new loan disbursements in the reporting period were customer demand, the monetary and economic outlook as well as the level of competition between banking institutions. Meanwhile, the new loan disbursements in the fourth quarter of 2023 are expected to grow.

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In terms of households, demand for new financing maintained growth in December 2023, with most sourced from commercial banks. In addition to the banking industry, households also relied on other sources to meet their financing needs, including cooperatives and leasing.

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