Central Bank of China

PRESS RELEASE Release Date: June 25, 2003




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Financial Conditions (May 2003)

Monetary Aggregates For the month of May 2003, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 7.34%, 7.08%, and 2.56%, respectively. The M1A growth rate was lower than that in the previous month, while the M1B and M2 growth rates went up mainly due to the lower base of the previous year, the increased loans and investments of banks, and the continued net inflows of foreign capital. In addition, the aggregate of M2 plus bond funds held by the general public also rose by an annual growth rate of 4.09% for the month.

Direct and Indirect Finance At the end of May, the annual growth rate of total loans and investments in major financial institutions, including monetary institutions and the Chunghwa Post Co., rose from "1.31% at the end of the previous month to "0.41% mainly due to the successive promotion of the consumer banking business by banks. 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 showed an annual growth rate of 3.06% for the month.



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Notes: 1. The upcoming Financial Conditions (June 2003) is to be released at 16:20 on July 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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