2006-03-31
Monetary and Other Monetary Financial Institutions Balance Sheet Surveys, February 2006
The Bank of Lithuania, having restructured monetary financial institutions (MFIs) balance sheet and monetary statistics which is compiled on the basis of new, more comprehensive statistical reporting, began releasing M3 data. M3 is the key indicator of the European System of Central Banks to which the European Central Bank devotes particular attention, has established and regularly announces the reference value for it. Issuing new Monthly Bulletins, the Bank of Lithuania has been announcing the historical values for M3 since December 1993. The survey below provides an analysis of the development of M3 and its components.
At the end of February 2006, M3 amounted to LTL 29.4 billion, increasing by LTL 167.3 million (LTL 105.4 million as a result of transactions) over a month. The annual growth rate of M3 was 27.6 per cent at the end of February. M2, which comprises the largest portion of M3, shrank by LTL 148.7 million over a month (LTL 208.5 million as a result of transactions) to make up LTL 28.8 billion at the end of February. The annual growth rate of M3 was 25.5 per cent at the end of February. M1 decreased by LTL 277.8 million (LTL 310.5 million as a result of transactions) over a month to make up LTL 19.7 billion at the end of February, and increased by 27.6 per cent as a result of transactions over a year.
The increase of M3 in February as a result of transactions was due to the fact that currency in circulation went up by LTL 50.6 million, deposits with an agreed maturity of up to 2 years grew by LTL 257.3 million, and debt securities with a maturity of up to 2 years by LTL 313.9 million. However, M3 went down because of a decline in overnight deposits by LTL 361.0 million as a result of transactions and a decline in deposits redeemable at notice with a maturity of up to 3 months by LTL 155.3 million.
The net external assets and domestic credit of MFIs increased in February. The net external assets of MFIs rose by LTL 925.0 million as a result of transactions and domestic credit by LTL 676.8 million. However, the annual growth rates of these indicators were different at the end of February. Net external assets shrank by 46.3 per cent, while domestic credit grew by 59.7 per cent over a year. The increase of the net external assets of MFIs as a result of transactions was due to the increase of the net external assets of the Bank of Lithuania by LTL 939.6 million.
The growth of domestic credit in February was driven by an increase in MFIs loans to other residents by LTL 997.1 million. The annual growth rate of these loans was 67.3 per cent at the end of February. Loans to non-financial corporations of other MFIs expanded as a result of transactions by LTL 677.2 million over a month, while their annual growth rate was 46.4 per cent at the end of February. Loans of other MFIs to households increased as a result of transactions by LTL 366.5 million over a month, increasing over a year due to transactions by 87.7 per cent at the end of February. Consumer credit to households rose by LTL 48.9, lending for house purchase by LTL 266.9 million, and other lending by LTL 50.7 million over a month. The annual growth rate of lending for house purchase was 87.5 per cent at the end of February.
Central government deposits grew as a result of transactions by LTL 534.7 million and longer-term financial liabilities by LTL 194.5 million over a month. The growth rates of these indicators were respectively 25.0 and 32.9 per cent at the end of February. The increase in longer-term financial liabilities in February was due to an increase in capital and reserves as a result of transactions by LTL 109.8 million, in debt securities with a maturity of over 2 years by LTL 71.4 million, and in deposits with an agreed maturity of over 2 years by LTL 13.3 million.