Regarding the main components of M3, the annual growth rate of M1 stood at 1.2% in June 2011, unchanged from the previous month. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 3.7% in June, from 3.9% in the previous month. The annual growth rate of marketable instruments (M3-M2) decreased to 0.5% in June, from 2.9% in May. Among the deposits included in M3, the annual growth rate of deposits placed by households decreased to 2.1% in June, from 2.3% in the previous month, while the annual growth rate of deposits placed by non-financial corporations increased to 4.5% in June, from 3.7% in the previous month. Finally, the annual growth rate of deposits placed by non-monetary financial intermediaries (excluding insurance corporations and pension funds)decreased to 6.1% in June, from 11.2% in the previous month.
Counterparts to M3: credit and loans
Turning to the main counterparts of M3 on the asset side of the consolidated balance sheet of Monetary Financial Institutions (MFIs), the annual growth rate of total credit granted to euro area residents decreased to 2.6% in June 2011, from 3.1% in the previous month. The annual growth rate of credit extended to general government decreased to 4.6% in June, from 5.7% in May, while the annual growth rate of credit extended to the private sector decreased to 2.2% in June, from 2.5% in the previous month. Among the components of credit to the private sector, the annual growth rate of loans decreased to 2.5% in June, from 2.7% in the previous month (adjusted for loan sales and securitisation, the rate decreased to 2.7%, from 3.0% in the previous month). The annual growth rate of loans to households decreased to 3.2% in June, from 3.4% in May (adjusted for loan sales and securitisation, the rate decreased to 2.9%, from 3.1%). The annual growth rate of loans to non-financial corporations increased to 1.5% in June, from 0.9% (adjusted for loan sales and securitisation, the rate increased to 2.3% in June, from 1.8% in the previous month). The annual growth rate of lending for house purchase, the most important component of household loans, stood at 4.3% in June, compared with 4.4% in the previous month. Finally, the annual growth rate of loans to non-monetary financial intermediaries (excluding insurance corporations and pension funds) decreased to 3.4% in June, from 7.3% in the previous month.
Other counterparts
Over the 12 months up to June 2011, the net external asset position of the euro area MFI sector increased by €137 billion, compared with an increase of €54 billion over the 12 months up to May. The annual growth rate of longer-term financial liabilities of the MFI sector increased to 4.6% in June, from 4.3% in May.
