Financial Conditions (November 2005)
PRESS RELEASE Release Date: December 26, 2005
Financial Conditions (November 2005)
Monetary Aggregates For the month of November 2005, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 5.96%, 5.44%, and 6.14%, respectively. Both M1A and M2 growth rates were lower than those recorded in the previous month mainly due to the slackening growth of bank loans and investments. The higher M1B growth rate was mainly owing to a buoyant stock market. After adjusting for the sale of its trust business by the Taiwan Development and Trust Corporation (TDTC) to a domestic bank as a result of regime change, the growth rate of M2 was 6.09%. For the first eleven months of this year, M1A, M1B, and M2 exhibited average annual growth rates of 7.74%, 7.15%, and 6.18%, respectively.
Reserve Money The daily average reserve money in November was NT$1,793.7 billion, edging down NT$0.1 billion from the previous month. Currency in circulation increased by NT$3.0 billion but reserves deposited with the Bank decreased by NT$3.1 billion. The annual growth rate of the daily average reserve money in November was 7.59%, falling by 0.79 of a percentage point from 8.38% in the previous month.
Direct and Indirect Finance At the end of November, the annual growth rate of total outstanding loans and investments of major financial institutions, including monetary institutions, the Chunghwa Post Co., as well as money market mutual funds, fell from 8.13% at the end of the previous month to 7.93%. This was mainly due to a smaller increase in bank loans and investments compared to the corresponding month of last year. After adjusting for the sale of its trust business by the TDTC to a bank, the growth rate was 7.86%. 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 outstanding amount of funds raised by non-financial sectors showed an annual growth rate of 6.44%, lower than the 7.07% posted in the previous month.
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Notes: 1.The upcoming Financial Conditions (December 2005) is scheduled for release at 16:20 on January 25, 2006.
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.