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Home News Europe Monetary Developments in the Euro Area: December 2010


Monetary Developments in the Euro Area: December 2010
added: 2011-02-01

The annual growth rate of M3 decreased to 1.7% in December 2010, from 2.1% in November 2010. The three-month average of the annual growth rates of M3 over the period October 2010 - December 2010 rose to 1.6%, from 1.4% in the period September 2010 - November 2010.

Regarding the main components of M3, the annual rate of growth of M1 decreased to 4.4% in December 2010, from 4.6% in November. The annual rate of change of short-term deposits other than overnight deposits stood at -0.5% in December, unchanged from the previous month. The annual rate of change of marketable instruments decreased to -1.8% in December, from 0.5% in November.

Turning to the main counterparts of M3 on the asset side of the consolidated balance sheet of the MFI sector, the annual growth rate of total credit granted to euro area residents decreased to 3.5% in December 2010, from 4.0% in the previous month. The annual rate of growth of credit extended to general government decreased to 12.0% in December, from 13.3% in November, while the annual growth of credit extended to the private sector decreased to 1.6% in December, from 1.9% in the previous month. Among the components of the latter, the annual growth rate of loans to the private sector stood at 1.9% in December, compared with 2.0% in the previous month (adjusted for loan sales and securitisation the annual growth rate of loans to the private sector stood at 2.3%, unchanged from the previous month). The annual rate of change of loans to non-financial corporations stood at -0.2% in December, compared with -0.1% in November. The annual growth rate of loans to households increased to 3.0% in December, from 2.8% in the previous month. The annual rate of growth of lending for house purchase increased to 3.7% in December, from 3.4% in the previous month. The annual rate of change of consumer credit decreased to -0.9% in December, from -0.3% in November, while the annual growth rate of other lending to households increased to 2.7% in December, from 2.3% in the previous month. Finally, the annual rate of growth of loans to non-monetary financial intermediaries (except insurance corporations and pension funds)decreased to 5.2% in December, from 7.0% in the previous month.

Over the 12 months up to December 2010, the net external asset position of the euro area MFI sector decreased by EUR 79 billion, compared with a decrease of EUR 82 billion over the 12 months up to November. The annual rate of growth of longer-term financial liabilities of the MFI sector decreased to 3.8% in December, from 4.0% in November.


Source: ECB

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