Financial Conditions (September 2020)

Monetary Aggregates   For the month of September 2020, the monthly growth rates of the monetary aggregates M1B and M2 (measured on a daily average basis) were 1.12% and 0.46%, respectively, both lower than those of the previous month. The annual growth rates of M1B and M2 increased to 12.10% and 7.15%, respectively, mainly because of an increase in deposit money. For the first nine months of this year, the average annual growth rates of M1B and M2 were 8.93% and 5.21%, respectively.

Direct and Indirect Finance   At the end of September 2020, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.18%, lower than that at the end of the previous month. Meanwhile, the annual growth rate decreased from 7.24% at the end of the previous month to 6.71% mainly because of slower growth in bank claims on the private sector and a year-on-year decrease in bank claims on the government.  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 5.91%, the same as that at the end of the previous month.

Notes: 1. The next Financial Conditions (October 2020) is scheduled for release at 16:20 on November 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.