Financial Conditions (March 2020)

Monetary Aggregates   For the month of March 2020, the monthly growth rates of the monetary aggregates M1B and M2 (measured on a daily average basis) were 0.40% and 0.31%, respectively, both lower than those of the previous month. Despite an increase in net foreign capital outflows, the annual growth rates of M1B and M2 increased to 7.02% and 4.42%, respectively, because of faster growth in bank loans and investments. For the first three months of this year, the average annual growth rates of M1B and M2 were 7.21% and 4.45%, respectively.

Direct and Indirect Finance   At the end of March, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.19%, lower than that at the end of the previous month. Meanwhile, the annual growth rate increased from 5.47% at the end of the previous month to 5.58% because of faster growth in bank claims on the private sector. If (1) loans and investments extended by life insurance companies, (2) non-accrual loans reclassified and bad loans written off by monetary financial institutions, and (3) funds raised directly from capital markets were all taken into account, the total outstanding amount of funds raised by the non-financial sector would show an annual growth rate of 4.87%, higher than the 4.58% registered at the end of the previous month.

Notes: 1. The next Financial Conditions (April 2020) is scheduled for release at 16:20 on May 25, 2020.

2. For the release schedule for the coming months, please check the CBC website at

https://www.cbc.gov.tw/en/cp-515-102276-849a0-2.html.