Monetary developments in the euro area




29 June 2012









PRESS RELEASE
MONETARY DEVELOPMENTS IN THE EURO AREA: MAY 2012


The annual growth rate of the broad monetary aggregate M3 increased to 2.9% in May 2012, from 2.5% in April 2012.1  The three-month average of the annual growth rates of M3 in the period from March 2012 to May 2012 stood at 2.8%, compared with 2.7% in the period from February 2012 to April 2012.


Twelve-month percentage changes; (adjusted for seasonal
and end-of-month calendar effects)
MARCH
2012
APRIL
2012
MAY
2012
MARCH 2012 - MAY 2012
(AVERAGE)

M3

3.0

2.5

2.9

2.8

M1

2.8

1.8

3.3

2.6

Loans to the private sector

0.6

0.2

-0.1

0.3
Loans to the private sector, adjusted for sales and securitisation

1.2

0.8

0.4

0.8


M3 components

Regarding the main components of M3, the annual growth rate of M1 increased to 3.3% in May 2012, from

1.8% in April. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased  to 2.3% in May, from 3.3% in the previous month. The annual growth rate of marketable instruments (M3-M2) increased to 3.4% in May, from 2.5% in April. Among the deposits included in M3, the annual growth rate of deposits placed by households stood at 2.4% in May, compared with 2.5% in the previous month, while the annual growth rate of deposits placed by non-financial corporations was less negative at -0.2% in May, from -0.8% in the previous month. Finally, the annual growth rate of deposits placed by non-monetary financial intermediaries  (excludinginsurance corporations and pension funds) increased to 0.4% in May, from -0.8% in the previous month.


Counterparts to M3: credit and loans




 The annual growth rates presented in this press release refer to aggregatesadjusted for seasonal and end-of-month calendar effects.


- 2 -


Turning to the main counterparts of M3 on the asset side of the consolidated balance sheet of Monetary

Financial Institutions (MFIs), the annual growth rate of total credit granted to euro area residents stood at

1.5% in May 2012, compared with 1.4% in the previous month. The annual growth rate of credit extended to general government increased to 9.0% in May, from 7.6% in April, while the annual growth rate of credit extended to the private sector decreased to -0.2% in May, from 0.0% in the previous month. Among the components of credit to the private sector, the annual growth rate of loans decreased to -0.1% in May, from 0.2% in the previous month (adjusted for loan sales and securitisation2, the rate decreased to 0.4%, from 0.8% in the previous month). The annual growth rate of loans to households decreased to 0.3% in May, from 0.5% in April (adjusted for loan sales and securitisation, the rate decreased to 1.3%, from 1.5% in the  previous  month).  The  annual  growth  rate  of  lending  for  house  purchase,  the  most  important component of householdloans, decreased to 0.7% in May, from 1.0% in the previous month. The annual growth rate of loans to non-financial corporations decreased to 0.1% in May, from 0.4% in the previous month (adjusted for loan sales and securitisation, the rate decreased to 0.2% in May,  from 0.6% in the previous  month).  Finally,  the  annual  growth  rate  of  loans  to  non-monetary  financial  intermediaries (excluding insurance corporations and pension funds) was more negative at -2.1% in May, from -1.4% in the previous month.


Other counterparts

Over the 12 months up to May 2012, the net external asset position of the euro area MFI sector decreased by 36 billion,compared with a decrease of 39 billionover the 12 months up to April. The annual growth rate of longer-term financial liabilities of the MFI sector decreased to -0.1% in May, from
0.7% in April.


Notes
 Further predefined tables, statistical data and methodological notes, as well as the advance release calendar,are available on the ECB’s website at  http://www.ecb.europa.eu/stats/money/aggregates/aggr/html/index.en.html.




European Central Bank
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Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404
Reproduction is permitted provided that the source is acknowledged.












2   Adjusted for the derecognition of loans from the MFIs’ statistical balance sheets due to their sale or securitisation.


TABLE 1



MONETARY DEVELOPMENTS IN THE EURO AREA: MAY 2012
DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changesa))




END-OF- MONTH LEVEL

MONTHLY FLOW b)

ANNUAL GROWTH RATE
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012
COMPONENTS OF M3 c)
(1)         M3 (= items 1.3, 1.6 and 1.11) (1.1)            Currency in circulation
(1.2)             Overnight deposits
(1.3)     M1 (items 1.1 and 1.2)

(1.4)             Deposits with an agreed maturity of up to two years (1.5)            Deposits redeemable at notice of up to three months (1.6)         Other short term deposits (items 1.4 and 1.5)
(1.7)     M2 (items 1.3 and 1.6)

(1.8)             Repurchase agreements
(1.9)             Money market fund shares/units
(1.10)           Debt securities issued with a maturity of up to two years
(1.11)       Marketable instruments (items 1.8, 1.9 and 1.10)


9911

857
4016
4872

1888
1997
3885
8757

422
513
219
1154


56                     -48                      86

-5                         2                         7
34                     -58                      65
29                     -56                      72

4                      12                   -34
7                         7                      14
11                      19                     -20
40                     -37                      52

-19                       -9                      35
10                         4                      11
25                       -6                     -12
16                     -12                      34


3.0                       2.5                     2.9

5.5                       5.5                     5.5
2.2                       1.0                     2.9
2.8                       1.8                     3.3

3.9                       3.9                     1.6
2.5                       2.7                     3.0
3.2                       3.3                     2.3
3.0                       2.5                     2.9

4.3                      -0.7                    -1.3
-3.1                      -1.6                     1.6
20.2                    21.5                   21.3
3.7                       2.5                     3.4
COUNTERPARTS OF M3
MFI liabilities:

(2)         Holdings against central government  d)

(3)         Longer-term financial liabilities vis-à-vis other euro area residents  (= items 3.1 to 3.4)
(3.1)          Deposits with an agreed maturity of over two years
(3.2)          Deposits redeemable at notice of over three months (3.3)         Debt securities issued with a maturity of over two years (3.4)         Capital and reserves

MFI assets:

(4)         Credit to euro area residents (= items 4.1 and 4.2) (4.1)        Credit to general government
Loans
Securities other than shares
(4.2)          Credit to other euro area residents
Loans e)
loans adjusted for sales and securitisation f)
Securities other than shares
Shares and other equities

(5)         Net external assets

(6)         Other counterparts of M3 (residual)
(= M3 + items 2, 3 - items 4, 5)



312

7645

2483
113
2756
2293



16686
3263
1168
2095
13424
11166
ND
1521
737

941

240



-9                     -30                      22

-36                       -4                    -42

-29                     -12                   -32
-1                         1                       -1
-25                       -9                    -28
18                      16                      18



36                     -57                      33
31                       -7                      32
3                         0                        9
29                       -6                      22
4                     -51                        1
-6                     -21                     -11
-5                     -22                     -11
-4                     -14                         6
14                     -16                         7

-2                     -13                      12

-22                     -12                      21



11.1                     -4.1                   10.7

1.3                       0.7                    -0.1

1.2                       0.2                    -1.1
-5.2                      -4.6                    -5.1
-2.5                      -3.5                    -4.6
7.0                       7.3                     7.4



1.8                       1.4                     1.5
7.4                       7.6                     9.0
-4.3                      -2.9                    -0.9
15.3                    14.4                   15.4
0.5                       0.0                    -0.2
0.6                       0.2                    -0.1
1.2                       0.8                     0.4
1.1                       0.3                     0.6
-2.3                      -4.5                    -3.4

ND                      ND                   ND ND                     ND                   ND









a) Figures may not add up due to rounding. The information in this table is based on consolidated balance sheet statistics reported by monetary financial institutions
(MFIs). These include the Eurosystem, credit institutions and money market funds located in the euro area.
b) Monthly difference in levelsadjusted for reclassifications, exchange rate variations, other revaluations and any other changes which do not arise from transactions. c) Liabilitiesof MFIs and specificunits of the central government (post offices,treasury) vis-à-vis non-MFI euro area residents excluding central government.
d) Includes holdings of the central government of deposits with the MFI sector and of securities issued by the MFI sector.
e) For further breakdowns see Table 4.
f) Adjusted for the derecognition of loans from the MFI statistical balance sheet due to their sale or securitisation.


TABLE 2

BREAKDOWN OF DEPOSITS IN M3 BY HOLDING SECTOR AND TYPE: MAY 2012
DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changesa))


END-OF- MONTH LEVEL

MONTHLY FLOW b)

ANNUAL GROWTH RATE
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012

BREAKDOWN OF DEPOSITS IN M3
Total deposits (=items 1, 2, 3, 4 and 5) (1)        Deposits placed by householdsc)
(1.1)             Overnight deposits
(1.2)             Deposits with an agreed maturity of up to two years (1.3)            Deposits redeemable at notice of up to three months (1.4)            Repurchase agreements

(2)         Deposits placed by non-financial corporations

(2.1)             Overnight deposits
(2.2)             Deposits with an agreed maturity of up to two years (2.3)            Deposits redeemable at notice of up to three months (2.4)            Repurchase agreements

(3)         Deposits placed by non-monetary financial intermediaries excluding  insurance corporations and pension funds

(3.1)             Overnight deposits
(3.2)             Deposits with an agreed maturity of up to two years (3.3)            Deposits redeemable at notice of up to three months (3.4)            Repurchase agreements
of which: with central counterpartiesd)

(4)         Deposits placed by insurance corporations and pension funds

(5)         Deposits placed by other general government



8323

5166

2272
987
1891
16

1561

1036
433
78
15

1074


416
271
14
374
291

212

309



25                    -48                      81

20                      15                         3

-1                      10                         5
15                        1                     -10
6                         6                       11
-1                        -2                       -2

-2                     -12                         6

3                       -3                       14
-5                        -8                    -11
0                         1                         3
0                       -1                         0

-6                     -49                      56


29                    -61                      35
-14                       17                    -14
1                         0                       -1
-22                       -4                       36
-10                         2                       35

-6                         5                         5

20                       -8                      11



2.8                     2.0                       2.4

2.2                     2.5                       2.4

-0.4                     0.2                        0.4
9.6                     9.5                       8.2
2.5                     2.8                       2.9
-36.4                 -45.1                   -52.7

-0.2                   -0.8                      -0.2

1.1                     1.0                       3.3
-1.8                   -3.3                      -6.4
-6.7                   -5.3                      -1.6
-4.2                 -19.0                    -25.4

4.4                    -0.8                       0.4


16.9                     2.2                      12.3
-15.1                 -12.0                   -18.0
32.0                   37.3                     19.4
7.9                     5.5                       5.3
14.6                   12.5                        8.3

16.8                   14.0                     18.2

14.9                   12.5                     15.4









a) Figures may not add up due to rounding. The information in this table is based on consolidated balance sheetstatistics reported by monetary financial institutions
(MFIs). These include the Eurosystem, credit institutions and money marketfunds located in the euro area.
b) Monthlydifference in levelsadjusted for reclassifications, exchange rate variations, other revaluations and any other changes which do not arise from transactions. c) Includes depositsby non-profit institutions serving households.
d) The series is not adjusted for seasonal effects.


TABLE 3

CONTRIBUTIONS OF M3 COMPONENTS TO THE M3 ANNUAL GROWTH RATE: MAY 2012
DATA ADJUSTED FOR SEASONALEFFECTS (contributions in terms of the M3 annual percentage changea))



MARCH 2012

APRIL 2012

MAY 2012

(1)         M1

(1.1 of which : Currency
(1.2 of which : Overnight deposits

(2)         M2 - M1 (= other short-term deposits)

(3)         M3 - M2 (= short-term marketable instruments)

1.4

0.5
0.9

1.2

0.4

0.9

0.5
0.4

1.3

0.3

1.6

0.5
1.2

0.9

0.4
(4)         M3 (= items 1, 2 and 3)
3.0
2.5
2.9
a) Figures may not add up due to rounding.

TABLE 4

BREAKDOWN OF LOANS BY BORROWING SECTOR, TYPE AND ORIGINAL MATURITY: MAY 2012
DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changesa))


END-OF- MONTH LEVEL

MONTHLY FLOW b)

ANNUAL GROWTH RATE
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012
MARCH
2012
APRIL
2012
MAY
2012

BREAKDOWN OF LOANS c)

(1)         Loans to households d)
loans adjusted for sales and securitisation e)

(1.1 Credit for consumption (1.2)    Lending for house purchase (1.3 Other lending
of which: sole proprietors f)

(2)         Loans to non-financial corporations
loans adjusted for sales and securitisation e)

(2.1 up to 1 year
(2.2 over 1 year and up to 5 years
(3.3 over 5 years

(3)         Loans to non-monetary financial intermediaries except  insurance corporations and pension funds
of which: reverse repos to central counterparties f)

(4)         Loans to insurance corporations and pension funds



5252
ND

621
3802
830
418

4698
ND

1150
845
2704

1133

181

82



7                             7                           2
6                            6                           1

-2                           -2                           1
10                             7                           1
-2                             1                         -1
-1                           -1                         -1

-8                             7                       -10
-7                            7                         -9

-5                          18                         -5
0                           -1                         -1
-2                         -10                         -4

-8                         -28                         -4

2                         -11                           6

4                           -7                           1



0.6                      0.5                        0.3
1.7                      1.5                        1.3

-2.1                    -2.4                      -1.9
1.1                      1.0                        0.7
0.7                      0.7                        0.1
2.0                      1.7                        1.0

0.3                      0.4                        0.1
0.5                      0.6                        0.2

-0.4                      0.9                        0.2
-2.9                    -2.2                      -2.5
1.6                      1.1                        0.8

2.3                    -1.4                      -2.1

34.4                   18.4                      10.3

-0.2                    -6.5                      -6.3









a) Figures may not add up due to rounding.
b) Monthly difference in levels adjusted for write-offs/write-downs, reclassifications, exchangerate variations and any other changes which do not arise from transactions. c) Loansgranted by monetary financial institutions (MFIs) to non-MFI euro area residents excluding general government.
d) Includes loans to non-profit institutions serving households.
e) Adjusted for the derecognition of loans from the MFI statistical balance sheet due to their sale or securitisation. f) The series is not adjusted for seasonal effects.




From ECB
 

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