Money and the financing of the economy 2022Oct

The outstanding amount of interest-bearing deposits rises again
  • Over 12 months, the flow of resources of domestic MFIs included in the monetary aggregate M3 stands at +94 billion euros in October 2022 (see table 1), up by +3.4% on an annual basis (down from +5.0% in September 2022, see table 2).

  • The annual growth rate of overnight deposits slows down significantly again in October 2022 (+0.7%, down from +2.7% in September). Conversely, the growth of the M2 - M1 aggregate, which contains interest-bearing deposits, remains high (+10.7%, after +10.8% in September), sustained by the strong increase in deposits with an agreed maturity of up to two years (+41.3%, after +44.5% in September) and, to a lesser extent, in saving accounts (+6.4%, after +6.2% in September).

  • After taking into account gross monetary liabilities and assets vis-à-vis the rest of the euro area, growth in the French component of the euro area M3 monetary aggregate slows down in October 2022 (+4.1%, down from +6.0% in September).

  • MFIs sell securities from the resident public sector (see table 3), therefore weighing on the annual rate of growth of financing in this sector (+5.4% in October, down from +6.4% in September).

  • In contrast, the growth rate of financing to the private sector remains steady (+6.2%, after +6.4% in September). Within this sector, outstanding loans to households continued to increase (+5.5% in annualized terms in October, after +5.7% in September) and loans to non-financial companies increase sharply again (+8.6% up from +7.9% in September).

  • The growth of net external assets continues to contract sharply in October 2022 (-47.6%, down from -41.2% in September 2022) under the combined effect of the reduction in MFI assets with the rest of the world and the increase in resources from non-residents.

Table 1 - France : M3 and the financing of the economy

October 2022 (12-month cumulative flows)
Total assets 168.5 Total liabilities 168.5
Domestic General Government financing 57.8 Resources included in M3 94.0
Of which loans 1.9 M1 10.1
Of which securities 56.0 M2 - M1 99.9
Domestic private sector financing 211.7 M3 - M2 -16.1
Of which loans to households 89.1 Long-term resources (a) 74.5
Of which loans to NFCs 104.6
Net external assets -162.5
Remaining counterparts (b) 61.4


(a) Deposits over 2 years, debt securities issued, capital and reserves, central government deposits.
(b) Net of inter-MFI assets and liabilities, net of other balance sheet items (financial derivatives, accounting lags, fixed assets), currency in circulation, gold, SDR.
Source and production: Banque de France - Direction générale de la statistique, des études et de l'international
Table 2 - France : monetary resources of monetary financial institutions
Decomposition of French component of euro-area M3 Outstandings
(in € Bn)		 Annual growth
rate (in %)		 Flows
(en € Bn) (a)
oct-22 sept-22 oct-22 sept-22 oct-22
Overnight deposits 1,506 2.7 0.7 -22.5 -21.8
= Domestic resources included in M1 1,506 2.7 0.7 -22.5 -21.8
Deposits with agreed maturity of up to 2 years 169 44.5 41.3 22.0 1.6
+ Saving accounts 869 6.2 6.4 6.2 4.9
= Domestic resources included in M2-M1 1,038 10.8 10.7 28.2 6.6
MMF shares 233 -15.1 -17.8 0.1 3.1
+ Repurchase agreements 48 28.2 27.7 -1.8 2.2
+ Debt securities issued with a maturity of up to 2 years 42 78.4 64.2 8.9 -5.7
= Domestic resources included in M3-M2 322 -0.1 -3.8 7.2 -0.3
Sum of domestic resources included in M3 2,867 5.0 3.4 12.9 -15.6
+ Monetary external liabilities vis-à-vis other monetary union members 332 8.1 7.2 3.9 7.8
- Monetary external assets vis-à-vis other monetary union members 64 -28.9 -19.3 -1.8 7.0
= French component of euro area monetary aggregate M3 3,136 6.0 4.1 18.6 -14.8

(a) Seasonally-adjusted data.

Source and production: Banque de France - Direction générale de la statistique, des études et de l'international
Table 3 - Counterparts of domestic resources included in M3
Outstandings
(in € Bn)		 Annual growth
rate (in %)		 Flows
(en € Bn) (a)
oct-22 sept-22 oct-22 sept-22 oct-22
ASSETS
Domestic General government financing (1) 1,147 6.4 5.4 12.8 -4.0
Of which loans 209 0.9 0.9 0.1 0.2
Of which securities 938 7.7 6.5 12.7 -4.2
Domestic private sector financing (2) 3,626 6.4 6.2 27.8 6.3
Of which loans to households 1,704 5.7 5.5 6.9 5.2
Of which loans to NFCs 1,322 7.9 8.6 12.3 10.9
Net external assets (3) 209 -41.2 -47.6 -33.2 -29.7
Remaining counterparts (b) (4) 358 20.5 16.6 10.8 5.4
LIABILITIES
Long-term resources (c) (5) 2,472 3.6 3.1 5.3 -6.3
Domestic resources included in M3 (1)+(2)+(3)+(4)-(5) 2,867 5.0 3.4 12.9 -15.6

(a) Seasonally-adjusted data.
(b) Net of inter-MFI assets and liabilities, net of other balance sheet items (financial derivatives, accounting lags, fixed assets), currency in circulation, gold, SDR.
(c) Deposits over 2 years, debt securities issued, capital and reserves, central government deposits.

Source and production: Banque de France - Direction générale de la statistique, des études et de l'international
Contributions to the growth of the domestic resources included in M3
Contribution of monetary counterparts to growth of the domestic resources included in M3
Source and production: Banque de France - Direction générale de la statistique, des études et de l'international
Additional information
Resources included in M3 (excluding banknotes and coins) consist of investments with a maturity of up to two years held by money-holding agents (households, non-financial corporations, General government excluding central government, insurance companies, pension funds, non-monetary mutual funds, investment firms and special purpose vehicles, for the most part) with monetary financial institutions (MFI).

Monetary financial institutions (MFIs) include credit institutions, finance companies, the Caisse des dépôts et consignations, money market funds and the Banque de France.

Saving accounts include Livret A and Livret Bleu passbooks, sustainable development and solidarity passbooks, home savings accounts, popular savings passbooks, youth passbooks and ordinary passbooks. Regulated savings are partly centralized in the Savings Fund managed by the Caisse des Dépôts et Consignations and thus only pass through the banks' balance sheets. Repurchase agreements are temporary purchases of securities by customers (particularly companies, insurance companies and non-money market funds). Debt securities with a maximum maturity of two years mainly comprise NEUCP issued by French banks and subscribed by customers that are not credit institutions or money market funds.

Funding of the economy includes all financing provided by MFIs to the domestic public and private sectors, in the form of loans and securities (debt and equity).

Net external assets correspond to the balance (assets minus liabilities) of MFI operations with the rest of the world.

Long-term inflows of MFIs include capital and reserves, debt securities issued by MFIs with a maturity of more than 2 years, deposits with a maturity of more than 2 years and central government deposits.

The item "Remaining counterparts" includes the balance of inter-MFI receivables and liabilities, the net of other balance sheet items (financial derivatives, accounting differences, fixed assets) and currency in circulation.

Growth rates for the outstanding amounts are calculated by adjusting changes in stocks for effects not resulting from economic transactions, in particular corrections for classification errors, but not for exchange rate effects.

The data on outstanding amounts, annual growth rates, and 12-month cumulative flows published in this Statinfo are not seasonally adjusted, but the monthly flow data are.
More information on time series, calendar, methodology

All statistical time series published by the Banque de France can be accessed on Webstat Banque de France

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Money and the financing of the economy
STAT INFO - October 2022

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Money and the financing of the economy
  • Published on 11/28/2022
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Published on Monday, November 28, 2022