Central Bank of China

PRESS RELEASE Release Date: July 25, 2003




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Financial Conditions (June 2003)

Monetary Aggregates For the month of June 2003, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 6.62%, 9.16%, and 2.89%, respectively. The M1A growth rate was lower than that in the previous month mainly due to last year's higher base, while the higher M1B growth was mainly attributed to the increase in demand deposits for stock settlements in line with the robust transactions in stock market. The M2 growth rate also went up primarily due to rising loans and investments by banks, the continued net foreign capital inflows, and the increased net foreign exchange proceeds from trade. In addition, the aggregate of M2 plus bond funds held by the general public also rose by an annual growth rate of 4.22% for the month.

Direct and Indirect Finance At the end of June, the annual growth rate of total loans and investments in major financial institutions, including monetary institutions and the Chunghwa Post Co., rose from "0.40% at the end of the previous month to 1.79% mainly due to banks' policies to promote loans in view of the approaching settlement day for the first half of the year, the increase in margin credit triggered by the bullish stock market, as well as the mass promotion of consumer banking business. 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 funds raised by non-financial sectors exhibited an annual growth rate of 4.07% for the month.



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

2. For the release schedule for the next six months, check the CBC website at http://www.cbc.gov.tw/account/index.html.

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