Financial Conditions (May 2011)
PRESS RELEASE Release Date: June 24, 2011
Financial Conditions (May 2011)
Monetary Aggregates For the month of May 2011, the monthly growth rate of the monetary aggregates M1B, measured on a daily average basis, was 0.26%, higher than that of last month. The monthly growth rate of the monetary aggregates M2, measured on a daily average basis, was 0.33%, lower than that of last month. The annual growth rate of M1B declined to 8.00%, mainly caused by the transfer of funds to time and savings deposits. The annual growth rate of M2 rose to 6.14%, mainly due to a lower base effect as there were larger foreign capital outflows in the same period of last year. For the first five months of this year, the average annual growth rates of M1B and M2 were 8.83% and 5.94%, respectively.
Direct and Indirect Finance At the end of May, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of major financial institutions was 0.71%, higher than that of the previous month. Meanwhile, the annual growth rate declined from 7.86% at the end of the previous month to 7.77%. The decline was mainly due to a slowing growth 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 6.09%, lower than the 6.15% at the end of the previous month.
Notes: 1. The upcoming Financial Conditions (June 2011) is scheduled for release at 16:20 on July 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 .