Financial Conditions (November 2018)

Monetary Aggregates   For the month of November 2018, the monthly growth rates of the monetary aggregates M1B and M2, measured on a daily average basis, were -0.03% and 0.29%, both higher than those of the previous month. Despite faster growth in bank loans and investments, the annual growth rate of M1B decreased to 5.09% because of slower growth in passbook deposits. This, combined with a higher base effect, caused the annual growth rate of M2 to decrease to 3.09%.  For the first eleven months of this year, the average annual growth rates of M1B and M2 were 5.28% and 3.56%, respectively.

Direct and Indirect Finance   At the end of November, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.84%, higher than that at the end of the previous month. Meanwhile, the annual growth rate increased from 4.97% at the end of the previous month to 5.22% mainly because of faster growth in bank claims on the private sector and the government. 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 3.88%, higher than the 3.59% registered at the end of the previous month.

Notes:

1. The next Financial Conditions (December 2018) is scheduled for release at 16:20 on January 24, 2019.

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