“Credit growth continues to be driven mainly by households, with all subcategories recording positive growth. All sub-categories recorded positive growth for corporates (except overdrafts) driven by an increase in demand for shorter-term loans,” according to BoN.

Household annual credit growth increased by 3.7% y/y in September 2021, compared to 4.4% y/y in August 2021 , decreasing by 0.2% m/m in September 2021.

“The biggest contributors were overdrafts, moderating to 4.8% y/y in September 2021 (compared to 9.1% y/y in the prior month) and mortgage loans, slowing to 4.3% y/y in September 2021 (compared to 4.6% y/y in the prior month).”

Instalment and leasing credit increased to 1.3% y/y in September 2021, compared to 1.2% in the prior month.

“Corporate credit growth marginally lifted to 1.8% y/y in September 2021, compared to 1.2% y/y in August 2021(increasing by 2.3% m/m in September 2021), mainly attributed to modest growth in corporate borrowing and other loans and advances, both increasing by 2.8% y/y in September 2021 (compared to 0.4% y/y and -1.0% y/y in August 2021 respectively),” the central bank said.

“Higher demand for mortgages and other loans and advances stemmed mainly from businesses in the mining, services, construction and commercial services sectors.”