Financial Conditions (JULY 2008)
PRESS RELEASE Release Date: August 25, 2008
Financial Conditions (JULY 2008)
Monetary Aggregates For the month of July 2008, the annual growth rates of the monetary aggregates M1A, M1B, and M2, measured on a daily average basis, were 0.28%, -5.77%, and 1.45%, respectively. Compared to the previous month, the M1A, M1B, and M2 growth rates were all lower mainly because of a weak stock market, slowing growth in bank credit and net foreign capital outflow. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the M2 growth rate was 1.37%. For the first seven months of this year, the average annual growth rates of M1A, M1B, and M2 were 1.28%, -2.17%, and 1.69%, respectively.
Direct and Indirect Finance At the end of July, the annual growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions declined from 3.33% at the end of the previous month to 3.24%. The decline was mainly due to the slowing growth in bank claims on the private sector and the steady decrease in bank claims on the government sector. After adjusting for the merger of China United Trust and Investment Corporation and Cathay United Bank, the annual growth rate became 3.05%. 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 3.25%, lower than the 3.76% at the end of the previous month.
Notes: 1.The upcoming Financial Conditions (August 2008) is scheduled for release at 16:20 on September 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.