Central Bank of the Republic of China (Taiwan)
PRESS RELEASE Release Date: February 26, 2010

Financial Conditions (January 2010)
Monetary Aggregates      For the month of January 2010, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were 1.44% and 0.81%, respectively. Compared to the previous month, the M1B monthly growth rate was lower, while the M2 monthly growth rate was higher. The annual growth rates of M1B and M2 were 26.17% and 5.40%, respectively, both lower than those of the previous month. This was mainly due to a higher base effect because of the Chinese New Year holidays falling on January last year and a continuous net capital inflow. After adjusting for seasonal factors, the annual growth rates of M1B and M2 were 26.90% and 5.84%, respectively.

Direct and Indirect Finance      At the end of January, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions was 0.23%, lower than that of the previous month. Meanwhile, the annual growth rate increased from 0.75% at the end of the previous month to 0.91%. The increase was mainly due to a moderate decline of bank claims on the private sector. If (1) loans and investments extended by life insurance 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 the non-financial sector would show an annual growth rate of 2.05%, higher than the 1.62% at the end of the previous month.

Notes: 1. The upcoming Financial Conditions (February 2010) is scheduled for release at 16:20 on March 25, 2010.
2. For the release schedule for the next six months, please check the CBC website at
http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2