Financial Conditions (October 2001)
Central Bank of China
PRESS RELEASE Release Date: November 26, 2001
--------------------------------------------------------------------------------
Financial Conditions (October 2001)
Monetary Aggregates For the month of October 2001, the annual growth rates of
the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were
-3.17%, 3.31%, and 5.90%, respectively. M1A and M1B growth rose from the figures
recorded in the previous month, mainly attributed to the lower base of the
corresponding month of the previous year, and a continually narrowed interest
spread between time deposits and demand deposits, resulting in a shift of the
funds to demand deposits. However, M2 growth went down mainly due to the
decelerating growth of loans and investments. For the first ten months of this
year, M2 exhibited an average annual growth rate of 5.97%, which was within the
target range (5 % to 10%).
Deposits and Loans & Investments At the end of October, the annual growth rate
of total deposits in major financial institutions, including monetary
institutions and the Postal Savings System, declined to 5.56% from 6.16% at the
end of September. The annual growth rate of total loans and investments also
moved downward from -0.6% in September to -0.8%, mainly owing to the slowdown of
the economy and weak fund demand. If loans and investments extended by life
insurance companies and investment and trust companies, major financial
institutions' reclassifying nonaccrual loans and writing-off bad loans, 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
2.97% for the month.
Call-loan Rate and Reserve Conditions In spite of the Treasury's short-term
borrowing from banks, the issues of government bonds and Treasury bills, as well
as the placement of tax in the Treasury account with the Bank, the average
overnight call-loan rate for the month continued to trend downward from 3.173%
in September to 2.726%. This was mostly influenced by banks' easy fund
condition, which resulted from the maturity of the Bank's certificates of
deposit, the interest payment on government bonds and the tax redistribution
disbursements, as well as the Bank lowering both the discount rate and the rate
on accommodations by 25 basis points and the weighted average required reserve
ratio of deposits from 6.22% to 5% on October 4. For the month as a whole, the
average free reserves of depository institutions and the Postal Savings System
were NT$10.4 billion.
tables[EXCEL][PDF]