Credit extension to households rose by 8.1 per cent in July and 9,0 per cent in August, while credit extended to the corporate sector eased somewhat. Mortgage loans remained subdued, while instalment sale credit and leasing finance reflect robust vehicle sales. Unsecured lending has continued to rise rapidly, although again somewhat slower in recent months than in the first quarter of this year.
Partly as a result of this lending, household debt as a ratio to disposable income increased slightly, from 75.6 per cent to 76.3 per cent between the first and second quarters of 2012. The asset quality of the banking sector however remains sound.