The growth rate of overnight deposits is stabilising
Regarding aggregate M1, in July, overnight deposits increase by € 19 Bn, fall back from June (27 Bn) and May (55 Bn), but remains over levels observed prior to the COVID-19 crisis. As this flow is almost identical to the € 18 Bn flow observed in July 2019, the annual growth rate is therefore almost stable (+ 23.6 %, after + 23.7 % in June).
The growth rate of M2 - M1 aggregate is still increasing (+ 6.7 % after + 6.0 % in June and + 4.9 % in May) mainly driven by saving accounts: + 7.5 % (after + 6.7 % in June). With a growth rate down to + 0.5 % in July, after + 2.4 % in June, M3 - M2 aggregate is almost unchanged.
As a whole, after taking into account monetary assets and liabilities vis-à-vis other monetary union members, the M3 French component growth is strengthening in July: + 13.9 %, after + 13.6 % in June.
France : monetary resources of Monetary Financial Institutions
||Outstandings (in € Bn) (a)
||Annual growth rate (in %) (a)
|= Domestic resources included in M1
|Domestic resources included in M1, 3-month moving average
|Deposits with agreed maturity of up to 2 years
|+ Saving accounts
|= Domestic resources included in M2-M1
|Domestic resources included in M2-M1, 3-month moving average
|+ Repurchase agreements
|+ Debt securities issued with a maturity of up to 2 years
|= Domestic resources included in M3-M2
|Domestic resources included in M3-M2, 3-month moving average
|Sum of domestic resources included in M3
|Sum of domestic resources included in M3 , 3-month moving average
|+ 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
|French component of euro area monetary aggregate M3, 3-month moving average
(a) Seasonally-adjusted data.
Source : Banque de France
Contributions to the growth of the French component of M3
(Annual growth rate in %)
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 Thursday, August 27, 2020