Financial Conditions (August 2007)
PRESS RELEASE Released Date: September 27, 2007
Financial Conditions (August 2007)
Monetary Aggregates For the month of August 2007, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 7.26%, 8.60%, and 4.25%, respectively. Compared to the previous month, the M1A growth rate was higher due to a low comparison basis. Meanwhile, M1B and M2 growth rates were both lower mainly because of slackened trading in the stock market, which reversed the earlier net inflow of foreign capital, as well as slower growth in bank credit. For the first eight months of this year, the average annual growth rates of M1A, M1B, and M2 were 7.37%, 7.51%, and 5.04%, respectively.
Direct and Indirect Finance At the end of August, the annual growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions fell from 4.01% at the end of the previous month to 3.74%. This was mainly due to a decrease in bank loans to government agencies and a smaller increase in bank claims on private sector. 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, and the change in the fair value of banks' portfolio investments was excluded, the total outstanding amount of funds raised by non-financial sectors showed an annual growth rate of 4.31%, also lower than the 4.46% at the end of the previous month.
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Notes: 1.The upcoming Financial Conditions (September 2007) is scheduled for release at 16:20 on October 25, 2007.
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.