Monetary developments in the euro area: November 2020 (236 KB)

Press release

5 January 2021

Monetary developments in the euro area: November 2020

• Annual growth rate of broadmonetary aggregate M3increased to 11.0% in November 2020 from 10.5% in October
• Annual growth rate of narrowermonetary aggregate M1, comprising currency in circulation and overnight deposits, increased to 14.5% in November from 13.8% in October
• Annual growth rate ofadjusted loans to householdsstood at 3.1% in November, compared with 3.2% in October
• Annual growth rate ofadjusted loans tonon-financialcorporationsstood at 6.9% in November, compared with 6.8% in October

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 increased to 11.0% in November 2020 from 10.5% in October, averaging 10.6% in the three months up to November. The components of M3showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 14.5% in November from 13.8% in October. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 1.2% in November from 1.4% in October. The annual growth rate of marketable instruments (M3-M2) increased to 14.7% in November from 13.8% in October.

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 / 5 January 2021

Monetary developments in the euro area: November 2020

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 9.9 percentage points (up from 9.5 percentage points in October), short-termdeposits other than overnight deposits (M2-M1)contributed 0.3 percentage point (down from 0.4 percentage point) and marketable instruments (M3-M2)contributed 0.7 percentage point (as in the previous month).

From the perspective of the holding sectors of deposits in M3, the annual growth rate of deposits placed by households increased to 8.3% in November from 7.9% in October, while the annual growth rate of deposits placed by non-financial corporations decreased to 20.3% in November from 20.5% in October. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) increased to 10.9% in November from 7.4% in October.

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 / 5 January 2021

Monetary developments in the euro area: November 2020

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 November 2020 can be broken down as follows: credit to general government contributed 7.7 percentage points (up from 7.3 percentage points in October), credit to the private sector contributed 5.1 percentage points (down from 5.2 percentage points), longer-term financial liabilities contributed 0.7 percentage point (up from

1. percentage point), net external assets contributed -0.2 percentage point (down from 0.1 percentage point), and the remaining counterparts of M3 contributed -2.3 percentage points (up from -

1. percentage points).

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 / 5 January 2021

Monetary developments in the euro area: November 2020

Credit to euro area residents

As regards the dynamics of credit, the annual growth rate of total credit to euro area residentsincreased to 9.0% in November 2020 from 8.8% in the previous month. The annual growth rate of credit to general governmentincreased to 21.4% in November from 20.3% in October, while the annual growth rate of credit to the private sectorstood at 4.8% in November, compared with 4.9% in October.

The annual growth rate of adjusted loans to the private sector(i.e. adjusted for loan sales, securitisation and notional cash pooling) stood at 4.7% in November, compared with 4.6% in October. Among the borrowing sectors, the annual growth rate of adjusted loans to householdsstood at 3.1% in November, compared with 3.2% in October, while the annual growth rate of adjusted loans to non- financial corporationsstood at 6.9% in November, compared with 6.8% in October.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

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.