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 was 8.8% in August 2007,compared with 8.7% in July. The annual rate of decline of credit extended to general government increased to 4.2% in August, from 3.7% in July, while the annual rate of growth of credit extended to the private sector rose to 11.8% in August, from 11.6% in July. Among the components of the latter, the annual rate of growth of loans to the private sector increased to 11.2% in August, from 11.0% in the previous month. The annual growth rate of loans to non-financial corporations increased to 14.2% in August, from 13.6% in July.
The annual growth rate of loans to households stood at 7.0% in August, unchanged from the previous month. The annual rate of growth of lending for house purchase was 8.1% in August, unchanged from the previous month. The annual rate of growth of consumer credit stood at 5.7% in August, after 5.8% in July, while the annual growth rate of other lending to households was 3.3% in August, compared with 3.2% 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 19.6% in August, from 20.5% in the previous month.
Over the 12 months up to August 2007, the net external asset position of the euro area MFI sector rose by EUR 247 billion, compared with a rise of EUR 280 billion over the 12 months up to July. The annual rate of
growth of longer-term financial liabilities of the MFI sector stood at 9.4% in August, after 9.3% in July.
