Central Bank of China

PRESS RELEASE Release Date: September 25, 2003




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Financial Conditions (August 2003)

Monetary Aggregates For the month of August 2003, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 10.30%, 13.69%, and 4.34%, respectively. All three measures were higher than those recorded in the previous month mainly because of a substantial increase in net foreign capital inflows. In addition, the M2 aggregate plus bond funds held by the general public also rose at an annual rate of 5.47%.

Direct and Indirect Finance At the end of August, the annual growth rate of total outstanding loans and investments in major financial institutions, including monetary institutions and the Chunghwa Post Co., declined from 2.25% at the end of the previous month to 1.85%. This was mainly due to the repayment of the Treasury's borrowing from banks as well as the decrease in the amount of government bonds held by banks. 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 4.68%.



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Notes: 1. The upcoming Financial Conditions (September2003) is scheduled for release at 16:20 on October 24, 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

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