M2 Money Supply in November Last Year Reached KRW 2,893.1 Trillion... Up 7.7% YoY

Bank of Korea 'Monetary and Liquidity Trends in November 2019'

Money Supply Maintains High Growth Rate

[Asia Economy Reporter Shim Nayoung] The money supply in the market showed a high growth rate in November, following October of last year.

According to the 'Monetary and Liquidity Trends in November 2019' released by the Bank of Korea on the 16th, the money supply in November (based on M2) was KRW 2,893.1 trillion (won series, average balance basis), an increase of 7.7% compared to the same month last year. The increase was slightly higher than the previous month (7.5%). This is the highest level in 3 years and 8 months since March 2016 (7.8%). The year-on-year M2 growth rate has been on an upward trend since September 2017.

M2 is a broad monetary indicator that includes cash, demand deposits, savings deposits with checkable features, money market funds (MMF), and time deposits with maturities under two years.

By financial product, increases were centered on savings deposits with checkable features (KRW 8.6 trillion) and time deposits under two years (KRW 6.2 trillion). A Bank of Korea official explained, "Savings deposits increased as corporate settlement funds, which had been withdrawn due to VAT payments in the previous month, flowed back in, and time deposits increased due to deposit-taking institutions' efforts to attract deposits in preparation for the new loan-to-deposit ratio regulation."

By economic agents, households and non-profit organizations (KRW 12 trillion), other financial institutions (KRW 5.8 trillion), and corporations (KRW 3.4 trillion) increased, while other sectors decreased by KRW 1.6 trillion.

This content was produced with the assistance of AI translation services.