Regarding the main components of M3, the annual growth rate of M1 decreased to 1.2% in May 2011, from 1.6% in April. The annual growth rate of short-term deposits other than overnight deposits (M2-M1)increased to 3.9% in May, from 3.3% in the previous month. The annual growth rate of marketable instruments (M3-M2) increased to 2.7% in May, from -0.8% in April. Among the deposits included in M3, the annual growth rate of deposits placed by households stood at 2.3% in May, unchanged from the previous month, while the annual growth rate of deposits placed by non-financial corporations increased to 3.7% in May, from 3.3% in the previous month. Finally, the annual growth rate of deposits placed by nonmonetary financial intermediaries (excluding insurance corporations and pension funds) increased to 11.2% in May, from 8.3% 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 area residents stood at 3.1% in May 2011, compared with 3.2% in the previous month. The annual growth rate of credit extended to general government decreased to 6.2% in May, from 7.4% in April, while the annual growth rate of credit extended to the private sector stood at 2.4% in May, compared with 2.3% in the previous month. Among the components of credit to the private sector, the annual growth rate of loans stood at 2.7% in May, compared with 2.6% in the previous month (adjusted for loan sales and securitisation, the rate stood at 2.9%, compared with 2.8% in the previous month). The annual growth rate of loans to households stood at 3.4% in May, unchanged from the previous month(adjusted for loan sales and securitisation, the rate stood at 3.1%, compared with 3.0%). The annual growth rate of loans to non-financial corporations stood at 0.9% in May, unchanged from the previous month (adjusted for loan sales and securitisation, the rate stood at 1.8% in May, compared with 1.9% in the previous month). The annual growth rate of lending for house purchase, the most important component of household loans, stood at 4.4% in May, unchanged from the previous month. Finally, the annual growth rate of loans to non-monetary financial intermediaries (excluding insurance corporations and pension funds) increased to 7.3% in May, from 6.1% in the previous month.
Other counterparts
Over the 12 months up to May 2011, the net external asset position of the euro area MFI sector increased by €52 billion, compared with an increase of €73 billion over the 12 months up to April. The annual growth rate of longer-term financial liabilities of the MFI sector increased to 4.2% in May, from 4.0% in April.
