Central Bank of China

PRESS RELEASE Release Date: August 25, 2003




--------------------------------------------------------------------------------

Financial Conditions (July 2003)

Monetary Aggregates For the month of July 2003, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 8.44%, 11.16%, and 3.27%, respectively. All three measures edged higher than those recorded in the previous month. The higher M1A and M1B growth rates were mainly attributed to the increase in demand deposits for stock settlements in line with the robust transactions in the stock market. The M2 growth rate went up mainly due to the substantial increase in net foreign capital inflows and net foreign exchange proceeds from external trade. In addition, the aggregate of M2 plus bond funds held by the general public rose by an annual growth rate of 4.37% for the month.

Direct and Indirect Finance At the end of July, the annual growth rate of total loans and investments in major financial institutions, including monetary institutions and the Chunghwa Post Co., rose from 1.81% at the end of the previous month to 2.25%, mainly due to the lower base from the corresponding month in the previous year. If loans and investments extended by life insurance companies and investment and trust companies, non-accrual loans reclassified and bad loans written-off by major financial institutions, as well as funds raised directly from financial markets were taken into account, the total amount of funds raised by non-financial sectors showed an annual growth rate of 4.56% for the month.



--------------------------------------------------------------------------------

Notes: 1. The upcoming Financial Conditions (August 2003) is scheduled for release at 16:20 on September 25, 2003.

2. For the release schedule for the next six months, check the CBC website at http://www.cbc.gov.tw/EngHome/ESSDS/calacal.htm

Table[EXCEL][PDF]