Financial Conditions (April 2008)

Monetary Aggregates For the month of April 2008, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 0.78%, -1.66%, and 2.12%, respectively. Compared to the previous month, the M1A, and M2 growth rates were higher mainly because of the upswing of bank credit growth. The M1B growth rate was lower mainly because the growth of passbook savings deposits continued to decline. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the M2 growth rate was 2.06%. For the first four months of this year, the average annual growth rates of M1A, M1B, and M2 were 1.09%, -1.32%, and 1.59%, respectively.

Direct and Indirect Finance At the end of April, the annual growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions climbed from 1.84% at the end of the previous month to 2.43%. The rise was mainly due to a significant growth of bank portfolio investments. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the annual growth rate became 2.19%. 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 3.47%, higher than the 3.31% at the end of the previous month.

Notes: 1.The upcoming Financial Conditions (May 2008) is scheduled for release at 16:20 on June 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.