Financial Conditions (March 2011)

Monetary Aggregates    For the month of March 2011, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were -1.25% and -0.15%, respectively, both lower than those of last month. The annual growth rates of M1B and M2 declined to 9.22% and 5.97%, respectively. This was mainly due to a continued net foreign capital outflow. For the first three months of this year, the average annual growth rates of M1B and M2 were 9.32% and 5.90%, respectively. 

Direct and Indirect Finance   At the end of March, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions was 0.07%, lower than that of the previous month. Meanwhile, the annual growth rate rose from 7.63% at the end of the previous month to 8.20%. The rise was mainly due to substantial growth of bank claims on government enterprises and 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 6.21%, higher than the 6.02% at the end of the previous month.

Notes: 1. The upcoming Financial Conditions (April 2011) is scheduled for release at 16:20 on May 25, 2011.

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 .