align="left">Financial Conditions (December 2017)

Monetary Aggregates   For the month of December 2017, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were 0.31% and 0.21%, respectively. The annual growth rates of M1B and M2 decreased to 4.03% and 3.60%, respectively, mainly because of slower growth in bank loans and investments and net foreign capital outflows. For the year of 2017, the average annual growth rates of M1B and M2 were 4.65% and 3.75%, respectively.

Direct and Indirect Finance   At the end of December, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was -0.02%, lower than that at the end of the previous month. Meanwhile, the annual growth rate decreased from 5.24% at the end of the previous month to 4.80% because of a decrease in bank claims on the government, and slower growth in 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 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 3.67%, lower than the 3.99% registered at the end of the previous month.

Notes:

1. The next Financial Conditions (January 2018) is scheduled for release at 16:20 on February 27, 2018.

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 .