M3 components

Regarding the main components of M3, the annual growth rate of M1 decreased to 5.2% in April 2014, from 5.6% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) stood at -2.3% in April, unchanged from the previous month. The annual growth rate of marketable instruments (M3-M2) was more negative at -15.2% in April, from -14.6% in March. Among the deposits included in M3, the annual growth rate of  deposits placed  by households stood at 1.5% in April, compared with 1.6% in the previous month, while the annual growth rate of deposits placed by non-financial corporations stood at 5.8% in April, compared with 5.7% in the previous month. Finally, the annual growth rate of deposits placed by non-monetary financial intermediaries (excluding insurance corporations and pension funds) was less negative at -5.2% in April, from -5.5% 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 stood at -2.2% in April 2014, unchanged from the previous month. The annual growth rate of credit extended to general government stood at -0.9% in April, unchanged from the previous month, while the annual growth rate of credit extended to the private sector stood at -2.5% in April, unchanged from the previous month. Among the components of credit to the private sector, the annual growth rate of loans was less negative at -1.8% in April, from -2.2% in the previous month (adjusted for loan sales and securitisation, the rate was less negative at -1.5%, from -2.0% in the previous month). The annual growth rate of loans to households stood at 0.0% in April, compared with -0.1% in March (adjusted for loan sales and securitisation, the rate stood at 0.4%, unchanged from the previous month). The annual growth rate of lending for house purchase, the most important component of household loans, stood at 0.7% in April, compared with 0.6% in the previous month. The annual growth rate of loans to non-financial corporations was less negative at -2.8% in April, from -3.0% in the previous month (adjusted for loan sales and securitisation, the rate was less negative at -2.7% in April, from -3.1% in the previous month). Finally, the annual growth rate of loans to non-monetary financial intermediaries (excluding insurance corporations and pension funds) was less negative at -7.4% in April, from -10.6% in the previous month.

Other counterparts

Over the 12 months up to April 2014, the net external asset position of the euro area MFI sector increased by €367 billion, compared with an increase of €377 billion over the 12 months up to March. The annual growth rate of longer-term financial liabilities of the MFI sector stood at -1.1% in April, compared with -1.0% in March.