Narrow money supply (M1) rebounded, posting a year-on-year (y-o-y) growth of 1.9% in the month, compared to a slight decline of 0.1% y-o-y in August, the research house said in a note today.

It said broad money supply (M3) grew at a steady pace of 2.9% y-o-y, mirroring the previous month’s figure.

Reserve money also gained momentum, increasing by 20.9% y-o-y in September versus 20.6% y-o-y in August, it said.

“Similarly, total leading loan indicators also strengthened following higher loan applications at 11.4% y-o-y in September, compared to 8% in the previous month.

“This is on the back of stronger business applications which rose by 23.3%, offsetting the moderation in household applications (+1.1% y-o-y),” it said.

Loan approvals also rebounded, posting a y-o-y growth of 3.1% in September, against a 7.7% y-o-y decline in August, following an upturn in business approvals at 3%, while household approvals eased at 3.2% y-o-y, it said.

HLIB said deposits continued to grow in the month, albeit at a softer pace, posting a y-o-y growth of 4.3%.

This was attributable to growth across the board, including household (3.2%), business (2.2%), and foreign deposits (24.1%) on a y-o-y basis.

However, it said the household loan-deposit gap widened as monthly growth in household loans outpaced that of deposits.

On a y-o-y basis, household loans grew by 5.6%, while household deposits held steady at 3.2% in September.