BANKING / CREDIT CYCLE
Not a bank-equity page: this is the financing cycle. It combines corporate borrowing costs, NFC loan growth, M3 and two funding-structure indicators that matter for DCM read-through.
CORP BORROWING COST3.80%
3M +0.18pp1Y +0.28pp
NFC LOAN GROWTH4.40%
3M +1.10pp1Y +1.90pp
M3 GROWTH3.40%
3M +0.60pp
LOAN / DEPOSIT93.38%
q/q +0.54ppy/y -0.55pp
CREDIT + MONEY GROWTH y/y %
NFC loansM3
Cycle strengthening: both bank credit to non-financial corporates and broad money growth have accelerated into summer 2026.
CORPORATE BORROWING COST %
Funding remains tight: the average cost of new corporate bank borrowing has risen from 3.46% in Aug-25 to 3.80% in Jul-26. A stronger credit cycle is therefore occurring at a higher all-in funding cost.
FUNDING STRUCTURE current
A loan-to-deposit ratio below 100% indicates a broadly balanced deposit base, while the high variable-rate share means changes in rates transmit quickly into borrower cash flows.
DCM READ-THROUGH why it matters
Higher bank borrowing costs can improve the relative appeal of bond funding, but they also indicate tighter financing conditions overall. Meanwhile stronger NFC credit growth suggests the financing/investment cycle is not collapsing. For issuers, this is a higher-cost but still functioning funding environment rather than a classic credit-crunch setup.