Financial Conditions (January 2016)

Monetary Aggregates   For the month of January 2016, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were 1.48% and 0.93%, respectively, both higher than those of last month. The annual growth rate of M1B increased to 6.92% mainly because of a stronger demand for funds during the Chinese New Year holidays, whereas the annual growth rate of M2 decreased to 5.63% mainly because of net foreign capital outflows and slower growth in bank loans and investments.

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 monetary financial institutions was 0.42%, lower than that at the end of the previous month. Meanwhile, the annual growth rate decreased from 4.61% at the end of the previous month to 4.41% mainly because of slower growth in bank claims on the private sector and a decrease in bank claims on the government enterprises. If (1) loans and investments extended by life insurance companies, (2) non-accrual loans reclassified and bad loans written off by monetary 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 2.52%, lower than the 2.54% registered at the end of the previous month.

Notes:

1. The next Financial Conditions (February 2016) is scheduled for release at 16:20 on March 24, 2016.

2. For the release schedule for the coming months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2 .