Banco de España : Monetary developments in the euro area: December 2012 (113 KB)

28 January 2013

PRESS RELEASE MONETARY DEVELOPMENTS IN THE EURO AREA: DECEMBER 2012

The annual growth rate of the broad monetary aggregate M3 decreased to 3.3% in December
2012, from 3.8% in November 2012.1 The three-month average of the annual growth rates of M3 in the period from October 2012 to December 2012 increased to 3.7%, from 3.4% in the period from September 2012 to November 2012.

Twelve-month percentage changes; (adjusted for seasonal and end-of-month calendar effects)	OCTOBER 2012	NOVEMBER 2012	DECEMBER 2012	OCTOBER 2012 - DECEMBER 2012 (AVERAGE)
M3	3.9	3.8	3.3	3.7
M1	6.5	6.7	6.2	6.5
Loans to the private sector	-0.8	-0.8	-0.7	-0.8
Loans to the private sector, adjusted for sales and securitisation	-0.5	-0.5	-0.2	-0.4

M3 components

Regarding the main components of M3, the annual growth rate of M1 decreased to 6.2% in December 2012, from 6.7% in November. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 2.1% in December, from 1.8% in the previous month. The annual growth rate of marketable instruments (M3-M2) was more negative at -
7.6% in December, from -3.7% in November. Among the deposits included in M3, the annual growth rate of deposits placed by households increased to 4.4% in December, from 3.8% in the previous month, while the annual growth rate of deposits placed by non-financial corporations increased to 4.6% in December, from 4.2% in the previous month. Finally, the annual growth rate of deposits placed by non-monetary financial intermediaries (excluding insurance corporations and pension funds) decreased to 1.2% in December, from 1.5% in the previous month.

Counterparts to M3: credit and loans

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

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

- 2 -

area residents stood at 0.4% in December 2012, compared with 0.3% in the previous month. The annual growth rate of credit extended to general government decreased to 5.8% in December, from 8.4% in November, while the annual growth rate of credit extended to the private sector was less negative at -0.8% in December, from -1.6% in the previous month. Among the components of credit to the private sector, the annual growth rate of loans stood at
-0.7% in December, compared with -0.8% in the previous month (adjusted for loan sales and securitisation2, the rate was less negative at -0.2%, from -0.5% in the previous month). The annual growth rate of loans to households stood at 0.5% in December, compared with 0.4% in November (adjusted for loan sales and securitisation, the rate stood at 0.7%, compared with
0.8% in the previous month). The annual growth rate of lending for house purchase, the most important component of household loans, stood at 1.3% in December, compared with 1.2% in the previous month. The annual growth rate of loans to non-financial corporations was more negative at -2.3% in December, from -1.9% in the previous month (adjusted for loan sales and securitisation, the rate was less negative at -1.3% in December, from -1.5% in the previous month). Finally, the annual growth rate of loans to non-monetary financial intermediaries (excluding insurance corporations and pension funds) increased to 0.7% in December, from -1.7% in the previous month.

Other counterparts

Over the 12 months up to December 2012, the net external asset position of the euro area MFI sector increased by €99 billion, compared with an increase of €81 billion over the 12 months up to November. The annual growth rate of longer-term financial liabilities of the MFI sector was less negative at -1.6% in December, from -1.8% in November.

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.

• A new set of tables showing MFI balance sheets for the euro area, euro area countries and

non-euro area EU countries together with a user-friendly facility for downloading data is available in the ECB's Statistical Data Warehouse at http://sdw.ecb.europa.eu/reports.do?node=1000003157.

• December 2012 figures are partly affected by the orderly restructuring of the Spanish banking sector. This has involved, in particular, the transfer of loans to the asset management company for assets arising from bank restructuring (SAREB) and a corresponding increase of securities other than shares held by MFIs (issued by SAREB). While most of the effect on

monthly loan flows and growth rates is adjusted for in the series "loans adjusted for sales

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

- 3 -

and securitisation ", other factors linked to the orderly restructuring of the Spanish banking sector led to further reductions of loans to non -financia/ corporations that had a sizeable downward impact even on loan flows corrected far sa/es and securitisation. Furthermore, the increase of MFI capita/ and reserves is mirrored by an increase of the same size in MFI holdings of euro area securities other than shares issued by the European Stability Mechanism (ESM).

European Centrai Bank

Directorate Generai Communications and Language Services

Press and lnformation Division

- 4-

Kaiserstrasse 29, D-60311 Frankfurt am Main

Tel.: [phone], Fax: [phone]

Internet: http://www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

TABLE 1

MONETARY DEVELOPMENTS IN THE EURO AREA: DECEMBER 2012

DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changes a))

	END-OF- MONTH LEVEL	MONTHLY FLOW b)	ANNUAL GROWTH RATE
	DECEMBER 2012	OCTOBER 2012	NOVEMBE 2012	DECEMBE 2012	OCTOBER 2012	NOVEMBER 2012	DECEMBER 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)	9741 864 4222 5086 1808 2077 3884 8970 123 469 178 770	112 -5 -42 3 -7 2 68 30 -32 70 23 -30 10 -11 14 22 12 -1 32 1 13 103 23 -17 5 1 -3 9 -7 -14 -5 -22 -7 9 -28 -24	3,9 3,8 3,3 3,5 2,2 2,5 7,1 7,7 7,0 6,5 6,7 6,2 -1,8 -1,9 -1,9 4,9 5,2 5,9 1,7 1,8 2,1 4,3 4,5 4,4 -22,2 -20,1 -11,2 1,9 0,4 -4,4 13,8 0,5 -13,1 -0,4 -3,7 -7,6
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) of which: (6.1) Repos with central counterparties (liabilities) (+) g) (6.2) Reverse repos to central counterparties (assets) (-) g)	306 7563 2387 106 2679 2390 16454 3398 1164 2234 13056 10863 ND 1420 773 1029 126 257 196	-30 23 4 -10 -20 0 -4 -15 -20 -1 -1 -2 -9 2 -15 4 -5 37 5 -35 11 14 13 -41 11 -7 -21 3 20 -20 -9 -48 53 -1 -12 -25 5 -12 2 -2 -36 61 -6 1 17 33 69 23 34 -36 -71 -14 9 -36 4 -9 -21	5,7 19,4 -1,3 -1,8 -1,8 -1,6 -5,9 -5,7 -6,4 -9,1 -9,0 -9,9 -4,8 -4,6 -4,2 7,3 6,6 7,5 0,6 0,3 0,4 9,3 8,4 5,8 2,9 2,2 -0,4 13,1 12,0 9,4 -1,5 -1,6 -0,8 -0,8 -0,8 -0,7 -0,5 -0,5 -0,2 -8,0 -9,6 -4,9 2,1 2,9 5,3 ND ND ND ND ND ND -8,1 1,6 4,2 5,4 14,9 24,7

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 levels adjusted for reclassifications, exchange rate variations, other revaluations and any other changes which do not arise from transactions. c) Liabilities of MFIs and specific units 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. g) The series is not adjusted for seasonal effects.

TABLE 2

BREAKDOWN OF DEPOSITS IN M3 BY HOLDING SECTOR AND TYPE: DECEMBER 2012

DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changes a))

	END-OF- MONTH LEVEL	MONTHLY FLOW b)	ANNUAL GROWTH RATE
	DECEMBER 2012	OCTOBER 2012	NOVEMBER 2012	DECEMBER 2012	OCTOBER 2012	NOVEMBER 2012	DECEMBER 2012
BREAKDOWN OF DEPOSITS IN M3 Total deposits (=items 1, 2, 3, 4 and 5) (1) Deposits placed by households c) (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 d) (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 d) (4) Deposits placed by insurance corporations and pension funds (5) Deposits placed by other general government	8229 5302 2357 979 1955 11 1615 1112 404 88 10 799 452 246 14 86 207 306	105 32 -22 34 29 4 10 17 4 5 2 2 20 10 -1 -1 0 -1 17 13 -5 14 11 -6 1 3 1 2 0 0 0 -1 0 39 -17 5 33 0 -28 -1 -17 34 0 1 1 7 -1 -1 1 6 -1 14 0 -25	3,9 4,2 4,3 3,3 3,8 4,4 2,5 3,4 4,3 5,3 4,5 4,0 4,4 5,0 5,4 -63,7 -62,8 -53,9 2,8 4,2 4,6 9,8 10,9 10,2 -12,1 -10,1 -8,6 7,5 10,1 13,8 -36,3 -38,5 -27,6 3,9 1,5 1,2 23,4 21,4 11,5 -20,4 -22,9 -14,3 12,5 -34,6 -12,6 -3,6 -2,9 5,5 2,8 7,3 7,5 21,9 18,6 9,0

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 levels adjusted for reclassifications, exchange rate variations, other revaluations and any other changes which do not arise from transactions. c) Includes deposits by non-profit institutions serving households.

d) Excludes repurchase agreements with central counterparties.

TABLE 3

CONTRIBUTIONS OF M3 COMPONENTS TO THE M3 ANNUAL GROWTH RATE: DECEMBER 2012

DATA ADJUSTED FOR SEASONAL EFFECTS (contributions in terms of the M3 annual percentage change a))

	OCTOBER 2012	NOVEMBER 2012	DECEMBER 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)	3,3 0,3 3,0 0,7 0,0	3,4 0,2 3,2 0,7 -0,3	3,1 0,2 2,9 0,9 -0,7
(4) M3 (= items 1, 2 and 3)	3,9	3,8	3,3

a) Figures may not add up due to rounding.

TABLE 4

BREAKDOWN OF LOANS AS COUNTERPART TO M3 BY BORROWING SECTOR, TYPE AND ORIGINAL MATURITY: DECEMBER 2012

DATA ADJUSTED FOR SEASONAL EFFECTS (EUR billions and annual percentage changes a))

	END-OF- MONTH LEVEL	MONTHLY FLOW b)	ANNUAL GROWTH RATE
	DECEMBER 2012	OCTOBER 2012	NOVEMBER 2012	DECEMBER 2012	OCTOBER 2012	NOVEMBER 2012	DECEMBER 2012
BREAKDOWN OF LOANS AS COUNTERPART TO M3 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 g) (4) Loans to insurance corporations and pension funds	5244 ND 602 3825 817 420 4545 ND 1135 795 2615 984 89	4 6 -2 8 6 -3 -1 0 0 3 6 3 2 0 -5 0 0 3 -9 -7 -51 -8 -7 -22 2 -2 2 -3 -4 -12 -9 0 -42 0 -8 26 4 -3 1	0,4 0,4 0,5 0,8 0,8 0,7 -2,9 -2,9 -2,9 1,2 1,2 1,3 -0,6 -0,7 -0,6 0,8 0,4 -1,2 -1,8 -1,9 -2,3 -1,5 -1,5 -1,3 -2,2 -2,0 0,2 -4,4 -4,5 -5,3 -0,9 -1,0 -2,4 -2,2 -1,7 0,7 -2,3 -4,4 -2,0

a) Figures may not add up due to rounding.

b) Monthly difference in levels adjusted for write-offs/write-downs, reclassifications, exchange rate variations and any other changes which do not arise from transactions. c) Loans granted 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.

g) Excludes reverse repos to central counterparties.