Monetary developments in the euro area: December 2021 (329 KB)

Press release

28 January 2022

Monetary developments in the euro area: December 2021

• Annual growth rate of broadmonetary aggregate M3decreased to 6.9% in December 2021 from 7.4% in November (revised from 7.3%)
• Annual growth rate of narrowermonetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 9.8% in December from 10.0% in November
• Annual growth rate ofadjusted loans to householdsstood at 4.1% in December, compared with 4.2% in November
• Annual growth rate ofadjusted loans tonon-financialcorporationsincreased to 4.2% in December from 2.9% in November

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 6.9% in December 2021 from 7.4% in November, averaging 7.3% in the three months up to December. The components of M3showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 9.8% in December from 10.0% in November. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) stood at -1.5% in December, compared with -1.4% in November. The annual growth rate of marketable instruments (M3-M2) decreased to 6.4% in December from 12.2% in November.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 28 January 2022

Monetary developments in the euro area: December 2021

Chart 1

Monetary aggregates

(annual growth rates)

Data for monetary aggregates

Looking at thecomponents' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 7.0 percentage points (down from 7.1 percentage points in November), short-termdeposits other than overnight deposits (M2-M1)contributed -0.4percentage point (down from -0.3percentage point) and marketable instruments (M3-M2)contributed 0.3 percentage point (down from 0.6 percentage point).

From the perspective of the holding sectors of deposits in M3, the annual growth rate of deposits placed by households decreased to 5.5% in December from 6.0% in November, while the annual growth rate of deposits placed by non-financial corporations increased to 8.5% in December from 7.9% in November. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) decreased to 13.3% in December from 15.5% in November.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 28 January 2022

Monetary developments in the euro area: December 2021

Counterparts of the broad monetary aggregate M3

As a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), the annual growth rate of M3 in December 2021 can be broken down as follows: credit to general government contributed 4.6 percentage points (up from 4.4 percentage points in November), credit to the private sector contributed 3.9 percentage points (up from 3.7 percentage points), longer-term financial liabilities contributed 0.3 percentage point (up from

0.2 percentage point), net external assets contributed -0.8 percentage point (as in the previous month), and the remaining counterparts of M3 contributed -1.0 percentage points (down from -0.2 percentage point).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

(percentage points)

Data for contribution of the M3 counterparts to the annual growth rate of M3

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 28 January 2022

Monetary developments in the euro area: December 2021

Credit to euro area residents

As regards the dynamics of credit, the annual growth rate of total credit to euro area residentsincreased to 6.1% in December 2021 from 5.8% in the previous month. The annual growth rate of credit to general governmentincreased to 11.3% in December from 10.8% in November, while the annual growth rate of credit to the private sectorincreased to 3.9% in December from 3.7% in November.

The annual growth rate of adjusted loans to the private sector(i.e. adjusted for loan sales, securitisation and notional cash pooling) increased to 4.1% in December from 3.7% in November. Among the borrowing sectors, the annual growth rate of adjusted loans to householdsstood at 4.1% in December, compared with 4.2% in November, while the annual growth rate of adjusted loans to non- financial corporationsincreased to 4.2% in December from 2.9% in November.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

Data for adjusted loans to the private sector

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 28 January 2022

Monetary developments in the euro area: December 2021

Notes:

• Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
• "Private sector" refers to euro area non-MFIs excluding general government.
• Hyperlinks in the main body of the press release and in annex tables lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.

European Central Bank

Directorate General Communications, Global Media Relations Division Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], e-mail:[e-mail], website: www.ecb.europa.euReproduction is permitted provided that the source is acknowledged.