Monetary resources keep slowing down
Since September 2017, domestic monetary resources have continuously decelerated (+4.6%, down from +5.3% in February and +8.9% in September 2017). In the framework of a reduction in the Eurosystem asset purchases, the deceleration was mainly driven by overnight deposits (+8.6%, down from +10.4% in February and +15.5% in September). In March, M2-M1 slowed down too (+2.9% after +3.4% in February). It was mainly due to term accounts (with agreed maturity of up to 2 years), while (mostly regulated) saving accounts were still rather dynamic.
Taking into account assets and liabilities vis-à-vis the rest of the euro area, the French component of the monetary aggregate M3 decelerated (+5.4% after +6.7%).
France : monetary resources of Monetary Financial Institutions
||Outstandings (in € Bn) (a)
||Annual growth rate (in %) (a)
|= Domestic resources included in M1
|Deposits with agreed maturity of up to 2 years
|+ Saving accounts
|= Domestic resources included in M2-M1
|+ Repurchase agreements
|+ Debt securities issued with a maturity of up to 2 years
|= Domestic resources included in M3-M2
|Sum of domestic resources included in M3
|+ Monetary external liabilities vis-à-vis other monetary union members
|- Monetary external assets vis-à-vis other monetary union members
|= French component of euro area monetary aggregate M3
(a) Seasonally-adjusted data.
Source : Banque de France
The outstanding amount of monetary claims (excluding coins and banknotes) consists of claims with an initial maturity of up to and including 2 years that monetary counterparts (basically households, non-financial corporations, general government excluding central government, insurance corporations, non-money market funds, investment funds and financial vehicle corporations) hold against monetary financial institutions (deposit-taking institutions, sociétés de financement under French law, Caisse des dépôts et consignations, MMF and the central bank).
Saving accounts include regulated saving accounts, i.e. livrets A, livrets de développement durable, comptes d'épargne logement, livrets d'épargne populaire, and non-regulated saving accounts, i.e. livrets jeunes and livrets ordinaires. One part of the amounts held on regulated saving accounts is transferred by deposit-taking institutions to a fund managed by the Caisse des dépôts et consignations; the other part remains in banks' balance sheets. Debt securities with maturity of up to 2 years mainly include certificates of deposit (short term paper) issued by French deposit-taking institutions and subscribed by neither MMF nor deposit-taking institutions counterparts.
Annual growth rates are adjusted for reclassifications and revaluations but not for foreign exchange rate effects.
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Published on Monday, April 30, 2018