August Market Money Supply Surpasses 3100 Trillion Won... Up 9.5% Year-on-Year

[Asia Economy Reporter Kim Eun-byeol] Amid the COVID-19 pandemic and a low-interest-rate environment, households and others have been borrowing heavily, causing the money supply in the market to continue expanding rapidly.

According to the 'Money and Liquidity' statistics released by the Bank of Korea on the 15th, the broad money supply (M2 basis) in August was 3,101.6 trillion won, an increase of 9.8 trillion won (0.3%) compared to July.

The broad money supply indicator M2 includes cash, demand deposits, and checking deposits (all part of M1), as well as short-term financial products that can be quickly converted into cash, such as MMFs (Money Market Funds), time deposits under two years, installment savings, beneficiary certificates, CDs (Certificates of Deposit), RPs (Repurchase Agreements), financial bonds under two years, and money trusts under two years.

The August increase of 9.8 trillion won was less than July's 15.7 trillion won, but as of the end of August, M2 was still 9.5% higher than the same month last year.

By sector, the money supply increased by 5.3 trillion won in households and non-profit organizations, but decreased by 1.6 trillion won and 1.3 trillion won in corporations and other financial institutions, respectively.

Among financial products, demand savings deposits (8.8 trillion won) and demand deposits (7.8 trillion won) increased, while time deposits and installment savings under two years decreased by 6 trillion won due to the impact of low deposit interest rates.

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