Financial Conditions (December 2007)
PRESS RELEASE Released Date: January 25, 2008
Financial Conditions (December 2007)
Monetary Aggregates For the month of December 2007, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 4.26%, 1.07%, and 1.36%, respectively. Compared to the previous month, the M1A, M1B and M2 growth rates were all lower mainly because of subdued trading in the stock market, a continuous net capital outflow, as well as slowing growth in bank credit. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the M2 growth rate was still the same at 1.36%. For the twelve months of this year, the average annual growth rates of M1A, M1B, and M2 were 6.80%, 6.44%, and 4.25%, respectively.
Direct and Indirect Finance At the end of December, the annual growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions fell from 2.77% at the end of the previous month to 2.39%. This was mainly due to a continuous negative growth in bank claims on government agencies and a slower growth of bank claims on private enterprises. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the annual growth rate became 2.08%. 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 3.35%, lower than the 3.60% at the end of the previous month.
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Notes: 1.The upcoming Financial Conditions (January 2008) is scheduled for release at 16:20 on February 25, 2008.
2.For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/EngHome/default.asp.