Financial Conditions (December 2016)

Monetary Aggregates   For the month of December 2016, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were both 0.66%, higher than those of the previous month. The annual growth rate of M1B decreased to 6.01% mainly because of slower growth in demand deposits, whereas the annual growth rate of M2 increased to 4.11% mainly because of a drop in net foreign capital outflows and higher growth in foreign currency deposits.  For the year of 2016, the average annual growth rates of M1B and M2 were 6.33% and 4.51%, respectively.

Direct and Indirect Finance   At the end of December 2016, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.41%, higher than that at the end of the previous month. Meanwhile, the annual growth rate decreased from 4.06% at the end of the previous month to 3.88% mainly because of slower growth in bank claims on the government 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 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 2.56%, higher than the 2.43% registered at the end of the previous month.

Notes:

1. The next Financial Conditions (January 2017) is scheduled for release at 16:20 on February 24, 2017.

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 .