Financial Conditions (May 2020)

Monetary Aggregates   For the month of May 2020, the monthly growth rates of the monetary aggregates M1B and M2 (measured on a daily average basis) were 0.76% and 0.28%, respectively, both lower than those of the previous month. The annual growth rate of M1B increased to 7.81% mainly because of faster growth in passbook savings deposits, whereas the annual growth rate of M2 decreased to 4.18% mainly because of net foreign capital outflows. For the first five months of this year, the average annual growth rates of M1B and M2 were 7.39% and 4.35%, respectively.

Direct and Indirect Finance   At the end of May 2020, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.67%, higher than that at the end of the previous month. Meanwhile, the annual growth rate increased from 5.52% at the end of the previous month to 5.71% because of a smaller decrease in bank claims on the government and faster growth in bank claims on government enterprises. 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 4.98%, lower than the 5.06% registered at the end of the previous month.

Notes: 1. The next Financial Conditions (June 2020) is scheduled for release at 16:20 on July 24, 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.