Financial Conditions (January 2006)
PRESS RELEASE Release Date: February 24, 2006
Financial Conditions (January 2006)
Monetary Aggregates For the month of January 2006, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 9.89%, 8.39%, and 7.20%, respectively. All of these growth rates were higher than those recorded in the previous month. This was mainly due to a substantial increase in currency demand prior to the Chinese New Year holidays, and a rapid growth of bank loans and investments. If the Chinese New Year factor is discounted, the growth rates of M1A, M1B, and M2 were 7.40%, 7.48%, and 6.91%, respectively.
Direct and Indirect Finance At the end of January, 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, rose from 7.69% at the end of the previous month to 8.76%. This was mainly due to a significant increase in bank claims on the government sector and an increase in bank securities investments measured at fair values in compliance with Financial Accounting Standard No. 34, effective on January 1. After excluding the valuation changes in bank portfolio investments, the growth rate of bank loans and investments was 8.30%, still higher than that of last month. 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, while excluding the valuation changes in bank portfolio investments, the total outstanding amount of funds raised by non-financial sectors showed an annual growth rate of 7.14%, higher than the 6.96% posted in the previous month.
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Notes: 1.The upcoming Financial Conditions (February 2006) is scheduled for release at 16:20 on March 24, 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.