Central Bank of China
PRESS RELEASE Release Date: June 24, 2004




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Financial Conditions (May 2004)
Monetary Aggregates For the month of May 2004, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 26.94%, 23.55%, and 8.58%, respectively. The M1A growth rate was higher than that in the previous month mainly due to the lower base of last year, while the M1B growth fell because of the decrease in demand deposits used for stock settlements in line with the sluggish stock market. The higher M2 growth rate was mainly due to the sustained growth of bank loans and investments led by the accelerating economic growth in recent months, and the lower base of the corresponding month in 2003. In addition, the annual growth rate of M2 plus bond funds held by the general public also rose from 9.94% to 10.20%.

Direct and Indirect Finance During May, the annual growth rate of total outstanding loans and investments in major financial institutions, including monetary institutions and the Chunghwa Post Co., rose from 5.43% in the previous month to 6.24%, mainly due to the strong economic recovery that has resulted in the increase in bank claims on private enterprises. If(1)loans and investments extended by life insurance companies and investment and trust companies,(2)non-accrual loans reclassified and bad loans written-off by major financial institutions, and(3)funds raised directly from capital markets were all taken into account, the total amount of funds raised by non-financial sectors showed an annual growth rate of 9.71%, higher than the 9.14% posted in April.



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Notes: 1. The upcoming Financial Conditions (June 2004) is scheduled for release at 16:20 on July 26, 2004.

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