Monetary developments 2022Jul
Published on 26 August 2022
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Growth in overnight deposits continues to moderate
On an annual basis, growth in overnight deposits slows again in July to +5.2% (down from +6.0% in June and +7.5% in May). This slowdown is explained by a decrease in outstanding deposits from the non-banking financial sector, resulting from trade-off between money and securities by institutional investors; deposits from households and NFCs continue to grow at a pace consistent with that of loans granted.
The growth rate of the M2 - M1 aggregate increases slightly (+6.6%, up from +6.3% in June) due to an increase in deposits with an agreed maturity of less than 2 years (+14.1%, up from +11.3% in June). The growth of saving accounts is almost stable compared to the last months (+5.6%, after +5.5% in June and +5.6% in May).
The M3-M2 aggregate contracts significantly in July (-6.0%, down from -2.9% in June), due to a very sharp decline in holdings of money market fund shares/units (-20.2%, down from -9.2% in June 2022). This increase in the annual decline in outstandings is due to strong net sales of money market fund shares/units in July 2022, compared with net purchases in July 2021.
Overall, after taking into account gross monetary liabilities and assets vis-à-vis the rest of the euro zone, the growth rate of the French component of the euro zone monetary aggregate M3 decreases in July 2022 (+4.6%, down from +5.8% in June and +5.5% in May).
The growth rate of the M2 - M1 aggregate increases slightly (+6.6%, up from +6.3% in June) due to an increase in deposits with an agreed maturity of less than 2 years (+14.1%, up from +11.3% in June). The growth of saving accounts is almost stable compared to the last months (+5.6%, after +5.5% in June and +5.6% in May).
The M3-M2 aggregate contracts significantly in July (-6.0%, down from -2.9% in June), due to a very sharp decline in holdings of money market fund shares/units (-20.2%, down from -9.2% in June 2022). This increase in the annual decline in outstandings is due to strong net sales of money market fund shares/units in July 2022, compared with net purchases in July 2021.
Overall, after taking into account gross monetary liabilities and assets vis-à-vis the rest of the euro zone, the growth rate of the French component of the euro zone monetary aggregate M3 decreases in July 2022 (+4.6%, down from +5.8% in June and +5.5% in May).
France : Monetary Resources of Monetary Financial Institutions![]()
| Outstandings (in € Bn) (a) | Annual growth rate (in %) (a) | |||
| Jul-2022 | May-2022 | Jun-2022 | Jul-2022 | |
| Overnight deposits | 1,553 | 7.5 | 6.0 | 5.2 |
| = Domestic resources included in M1 | 1,553 | 7.5 | 6.0 | 5.2 |
| Domestic resources included in M1, 3-month moving average | 7.9 | 7.1 | 6.2 | |
| Deposits with agreed maturity of up to 2 years | 133 | -6.4 | 11.3 | 14.1 |
| + Saving accounts | 848 | 5.6 | 5.5 | 5.6 |
| = Domestic resources included in M2-M1 | 980 | 4.0 | 6.3 | 6.6 |
| Domestic resources included in M2-M1, 3-month moving average | 3.9 | 4.7 | 5.6 | |
| MMF shares | 210 | -12.5 | -9.2 | -20.2 |
| + Repurchase agreements | 43 | 70.4 | 28.9 | 53.5 |
| + Debt securities issued with a maturity of up to 2 years | 61 | -12.2 | 10.8 | 40.7 |
| = Domestic resources included in M3-M2 | 315 | -5.7 | -2.9 | -6.0 |
| Domestic resources included in M3-M2, 3-month moving average | -8.1 | -5.5 | -4.9 | |
| Sum of domestic resources included in M3 | 2,848 | 4.7 | 5.0 | 4.3 |
| Sum of domestic resources included in M3 , 3-month moving average | 4.5 | 4.7 | 4.7 | |
| + Monetary external liabilities vis-à-vis other monetary union members | 291 | 14.3 | 12.0 | 11.0 |
| - Monetary external assets vis-à-vis other monetary union members | 59 | 10.5 | -4.7 | 25.8 |
| = French component of euro area monetary aggregate M3 | 3,080 | 5.5 | 5.8 | 4.6 |
| French component of euro area monetary aggregate M3, 3-month moving average | 5.1 | 5.4 | 5.3 | |
(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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