Monetary developments 2020Oct
Published on 26 November 2020
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Monetary growth remains strong year-on-year, despite a slight decline in overnight deposits in October
On a monthly basis, the overnight deposits component of the monetary aggregates falls by 0.1% - mainly due to households and, to a lesser extent, non-financial corporations - making the growth of overnight deposits, expressed at an annual rate, fall slightly in October (+22.5%, after +23.8% in September). This pace of growth remains high due to the growth momentum of the previous three quarters.
The M2 - M1 aggregate continues its annual progression (+ 7.3 %, after + 6.4 % in September) driven both by the rebound in deposits with agreed maturity of up to 2 years (0.9 %, after - 3.0 %) and the increase in saving accounts (+ 8.5 %, after + 8.1 % in September).
The acceleration of the aggregate M3 - M2 (+ 6.9 % at annual pace, after + 4.9 % in September) is mainly linked to the increase in MMF shares (+ 9.1 %, after + 6.7 % in September)
After taking into account monetary assets and liabilities vis-à-vis other monetary union members, the growth of the French component of the M3 aggregate slows to 14.6%, after 15.5% in September.
The M2 - M1 aggregate continues its annual progression (+ 7.3 %, after + 6.4 % in September) driven both by the rebound in deposits with agreed maturity of up to 2 years (0.9 %, after - 3.0 %) and the increase in saving accounts (+ 8.5 %, after + 8.1 % in September).
The acceleration of the aggregate M3 - M2 (+ 6.9 % at annual pace, after + 4.9 % in September) is mainly linked to the increase in MMF shares (+ 9.1 %, after + 6.7 % in September)
After taking into account monetary assets and liabilities vis-à-vis other monetary union members, the growth of the French component of the M3 aggregate slows to 14.6%, after 15.5% in September.
France : monetary resources of Monetary Financial Institutions![]()
| Outstandings (in € Bn) (a) | Annual growth rate (in %) (a) | |||
| Oct- 2020 | Aug-2020 | SEP- 2020 | Oct- 2020 | |
| Overnight deposits | 1,369 | 23.9 | 23.8 | 22.5 |
| = Domestic resources included in M1 | 1,369 | 23.9 | 23.8 | 22.5 |
| Domestic resources included in M1, 3-month moving average | 24.0 | 24.0 | 23.4 | |
| Deposits with agreed maturity of up to 2 years | 124 | -5.5 | -3.0 | 0.9 |
| + Saving accounts | 756 | 7.8 | 8.1 | 8.5 |
| = Domestic resources included in M2-M1 | 880 | 5.8 | 6.4 | 7.3 |
| Domestic resources included in M2-M1, 3-month moving average | 6.1 | 6.3 | 6.5 | |
| MMF shares | 286 | 1.0 | 6.7 | 9.1 |
| + Repurchase agreements | 36 | 110.4 | 43.6 | 45.8 |
| + Debt securities issued with a maturity of up to 2 years | 54 | -22.4 | -20.1 | -16.7 |
| = Domestic resources included in M3-M2 | 377 | 2.5 | 4.9 | 6.9 |
| Domestic resources included in M3-M2, 3-month moving average | 2.1 | 3.2 | 4.8 | |
| Sum of domestic resources included in M3 | 2,625 | 14.1 | 14.6 | 14.7 |
| Sum of domestic resources included in M3 , 3-month moving average | 14.2 | 14.4 | 14.5 | |
| + Monetary external liabilities vis-à-vis other monetary union members | 251 | -4.9 | 13.9 | 5.7 |
| - Monetary external assets vis-à-vis other monetary union members | 45 | -9.7 | -25.2 | -20.1 |
| = French component of euro area monetary aggregate M3 | 2,831 | 12.8 | 15.5 | 14.6 |
| French component of euro area monetary aggregate M3, 3-month moving average | 13.6 | 14.2 | 14.3 | |
(a) Seasonally-adjusted data.
Source : Banque de France
Contributions to the growth of the French component of M3![]()
(Annual growth rate in %)
Additional information
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.
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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