PRESS RELEASE 29 March 2016
Monetary developments in the euro area: February 2016
Read Full Report HERE Monetary developments in the euro area
• The annual growth rate of the broad monetary aggregate M3 stood at 5.0% in February 2016, unchanged from the previous period.
• The annual growth rate of the narrower aggregate M1, which includes currency in circulation and overnight deposits, decreased to 10.3% in February, from 10.5% in January.
• The annual growth rate of loans to households stood at 1.6% in February, after 1.4% in January.
• The annual growth rate of loans to non-financial corporations increased to 0.9% in February, from 0.6% in January.
Components of the broad monetary aggregate M3 The annual growth rate of the broad monetary aggregate M3 stood at 5.0% in February 2016, unchanged from the previous period, averaging 4.9% in the three months up to February. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate including currency in circulation and overnight deposits (M1) decreased to 10.3% in February, from 10.5% in January. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) was less negative at -2.5% in February, from -2.7% in January. The annual growth rate of marketable instruments (M3-M2) was less negative at -1.1% in February, from -1.5% in January. Within M3, the annual growth rate of deposits placed by households increased to 4.0% in February, from 3.8% in January, while the annual growth rate of deposits placed by non-financial corporations stood at 6.5% in February, unchanged from the previous month. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) decreased to 7.0% in February, from 9.2% in January.
Credit to euro area residents
The annual growth rate of total credit to euro area residents increased to 3.2% in February 2016, from 2.6% in the previous month. The annual growth rate of credit to general government increased to 10.1% in February, from 8.7% in January, while the annual growth rate of credit to the private sector increased to 1.2% in February, from 0.9% in January. Among the components of credit to the private sector, the annual growth rate of loans (adjusted for loan sales and securitisation) increased to 0.9% in February, from 0.6% in January. In particular, the annual growth rate of loans to households increased to 1.6% in February, from 1.4% in January, and the annual growth rate of loans to non-financial corporations increased to 0.9% in February, from 0.6% in January.
Longer-term financial liabilities
The annual growth rate of longer-term financial liabilities of the MFI sector stood at -3.4% in February 2016, compared with -3.3% in January. M3 and its counterparts The annual growth rate of the broad monetary aggregate
M3 stood at 5.0% in February 2016.
The contributions of M3 counterparts on the MFI balance sheet were as follows. Longer-term financial liabilities contributed 2.3 percentage points, net external assets contributed -1.5 percentage points, credit to general government contributed 3.5 percentage points, and credit to the private sector contributed 1.4 percentage points; the remaining counterparts of M3 contributed -0.7 percentage point.
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