Overnight deposits and saving accounts continue to pull up money growth
Over one year, overnight deposits have increased by + 23.8 % in September, after + 24.0 % in August.
The slightest contraction of deposits with agreed maturity of up to 2 years (- 2.2 % after - 5.4 %) and an increase in saving accounts (+ 8.0 %, after + 7.7 % in August) lead M2 - M1 aggregate's growth to an higher pace (+ 6.5 % after + 5.7 % in August).
M3 - M2 aggregate's acceleration (+ 5.4 % in September after + 2.6 % in August) in mainly due to an increase of the holding of MMF shares (+ 7.3 % at annual pace, after + 1.1 % in August).
All in all, the growth of the French component of M3 rise by + 15.7 % in September after + 12.8 % in August reflects the increase of monetary counterparts, i.e. the financing of the economy, combine with the effect of an increase by € 52 Bn of monetary external assets and liabilities vis-à-vis other monetary union members.
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 Tuesday, October 27, 2020