Monetary developments in the euro area: December 2020 (819 KB)

Press release

29 January 2021

Monetary developments in the euro area: December 2020

• Annual growth rate of broadmonetary aggregate M3increased to 12.3% in December 2020 from 11.0% in November
• Annual growth rate of narrowermonetary aggregate M1, comprising currency in circulation and overnight deposits, increased to 15.6% in December from 14.5% in November
• Annual growth rate ofadjusted loans to householdsstood at 3.1% in December, unchanged from previous month
• Annual growth rate ofadjusted loans tonon-financialcorporationsstood at 7.0% in December, compared with 6.9% in November

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 increased to 12.3% in December 2020 from 11.0% in November, averaging 11.3% in the three months up to December. The components of M3showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 15.6% in December from 14.5% in November. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 1.8% in December from 1.2% in November. The annual growth rate of marketable instruments (M3-M2) increased to 24.1% in December from 14.4% in November.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 29 January 2021

Monetary developments in the euro area: December 2020

Chart 1

Monetary aggregates

(annual growth rates)

Data for monetary aggregates

Looking at thecomponents' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 10.7 percentage points (up from 10.0 percentage points in November), short-termdeposits other than overnight deposits (M2-M1)contributed 0.5 percentage point (up from 0.3 percentage point) and marketable instruments (M3-M2)contributed 1.2 percentage points (up from 0.7 percentage point).

From the perspective of the holding sectors of deposits in M3, the annual growth rate of deposits placed by households increased to 8.7% in December from 8.3% in November, while the annual growth rate of deposits placed by non-financial corporations increased to 20.7% in December from 20.3% in November. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) increased to 14.5% in December from 11.0% in November.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 29 January 2021

Monetary developments in the euro area: December 2020

Counterparts of the broad monetary aggregate M3

As a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), the annual growth rate of M3 in December 2020 can be broken down as follows: credit to general government contributed 8.1 percentage points (up from 7.6 percentage points in November), credit to the private sector contributed 5.6 percentage points (up from 5.3 percentage points), longer-term financial liabilities contributed 0.3 percentage point (down from 0.4 percentage point), net external assets contributed -0.2 percentage point (as in the previous month), and the remaining counterparts of M3 contributed -1.5 percentage points (up from -2.2 percentage points).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

(percentage points)

Data for contribution of the M3 counterparts to the annual growth rate of M3

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 29 January 2021

Monetary developments in the euro area: December 2020

Credit to euro area residents

As regards the dynamics of credit, the annual growth rate of total credit to euro area residentsincreased to 9.6% in December 2020 from 9.1% in the previous month. The annual growth rate of credit to general governmentincreased to 22.2% in December from 21.2% in November, while the annual growth rate of credit to the private sectorincreased to 5.3% in December from 5.0% in November.

The annual growth rate of adjusted loans to the private sector(i.e. adjusted for loan sales, securitisation and notional cash pooling) stood at 4.7% in December, unchanged from the previous month. Among the borrowing sectors, the annual growth rate of adjusted loans to householdsstood at 3.1% in December, unchanged from the previous month, while the annual growth rate of adjusted loans tonon-financialcorporationsstood at 7.0% in December, compared with 6.9% in November.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.