Press release
25 February 2021
Monetary developments in the euro area: January 2021
-
The annual growth rate ofbroad monetary aggregate M3 stood at 12.5% in January 2021, after 12.4% in December 2020 (12.3% before revision)
-
The annual growth rate ofnarrow monetary aggregate M1, which includes banknotes and coins in circulation and demand deposits, rose to 16.4% in January, from 15.6% in December
-
The annual growth rate of loans to households, corrected data, stood at 3.0% in January, after 3.1% in December
-
The annual growth rate of loans to non-financial corporations, corrected data, rose to 7.0% in January, after 7.1% in December
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 stood at 12.5% in January 2021, after 12.4% in December 2020, averaging 12.0% over the period. three months ending in January. The components of M3 presented the following developments. The annual growth rate of the narrow aggregate M1, which includes banknotes and coins in circulation and demand deposits, increased to 16.4% in January, from 15.6% in December. The annual growth rate of short-term deposits other than overnight deposits (M2 – M1) declined to 1.1% in January, from 1.7% in December. The annual growth rate of negotiable instruments
(M3 – M2) fell to 18.2% in January, after 25.0% in December.
European Central Bank
Directorate-General for Communication, Media Relations Division Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany
Phone. : +49 69 1344 7455, email: [email protected], internet : www.ecb.europa.eu
Reproduction authorized, citing the source
Translation: Bank of France
Graph 1
Monetary aggregates
(annual growth rates)
Data relating to monetary aggregates
Regarding component contributions to annual M3 growth, the narrow aggregate M1 contributed 11.3 percentage points (after 10.7 percentage points in December), short-term deposits other than sight deposits (M2 – M1) for 0.3 percentage point (after 0.4 percentage point) and negotiable instruments (M3 – M2) for 0.9 percentage point (after 1.2 percentage point).
From the point of view of the sectors holding deposits included in M3, the annual growth rate of household deposits rose to 9.1% in January, after 8.7% in December, while that of deposits from non-financial corporations reached 21.8% in January, after 20.7% in December. Finally, the annual growth in deposits of non-monetary financial institutions (excluding insurance companies and pension funds) accelerated, standing at 15.6% in January, after 14.5% in December.
European Central Bank
Directorate-General for Communication, Media Relations Division Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany
Phone. : +49 69 1344 7455, email: [email protected], internet : www.ecb.europa.eu
Reproduction authorized, citing the source
Translation: Bank of France
Counterparties of the broad monetary aggregate M3
Reflecting changes in the consolidated balance sheet items of monetary financial institutions (MFIs) other than M3 (M3 counterparts), the annual growth rate of M3 in January 2021 can be broken down as follows: loans to general government contributed 8.3 percentage points (after 8.1 percentage points in December), loans to general government private sector for 5.4 percentage points (after 5.7 percentage points), long-term financial commitments for 0.5 percentage point (after 0.3 percentage point), the net external position for – 0, 4 percentage point (after – 0.2 percentage point) and the other M3 counterparts for – 1.3 percentage point (after – 1.4 percentage point).
Graph 2
M3 counterpart contributions to the annual growth rate of M3
(in percentage points)
Data on M3 counterpart contributions to M3 annual growth rate
European Central Bank
Directorate-General for Communication, Media Relations Division Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany
Phone. : +49 69 1344 7455, email: [email protected], internet : www.ecb.europa.eu
Reproduction authorized, citing the source
Translation: Bank of France
Claims on residents of the euro area
In terms of credit dynamics, the annual growth rate of total claims on euro area residents was 9.6% in January 2021, unchanged from the previous month. The annual growth rate of claims on general government rose to 22.9% in January, after 22.2% in December, while that of support to the private sector declined to 5.1% in January, after 5.4% in December.
The annual growth rate of loans to the private sector, corrected data (i.e. corrected for loan sales, securitization and cash pooling notional) fell to 4.5% in January, from 4.7% in December. With regard to borrowing sectors, the annual growth rate of loans to households, corrected data, stood at 3.0% in January, after 3.1% in December, while that of loans to non-financial corporations, corrected data, rose to 7.0% in January, after 7.1% in December.
European Central Bank
Directorate-General for Communication, Media Relations Division Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany
Phone. : +49 69 1344 7455, email: [email protected], internet : www.ecb.europa.eu
Reproduction authorized, citing the source
Translation: Bank of France
–
