Money supply grew 16%. At end-August 2008, broad money (M2) stood at RMB 44.9 trillion, increasing 16% year on year, down 0.35 percentage points from the end of last month. Narrow money (M1) registered RMB 15.7 trillion, rising 11.48% year on year, down 2.48 percentage points from the end of last month. Cash in circulation (M0) grew 10.89% year on year to RMB 3.1 trillion. Net cash injection from January to August totaled RMB 47.6 billion, down RMB 27.3 billion year on year.
RMB loans increased 14.29% year on year. At end-August, outstanding RMB and foreign currency loans of financial institutions totaled RMB 31.1 trillion, rising 14.86% year on year. Outstanding RMB loans grew 14.29% year on year to RMB 29.3 trillion, down 0.29 percentage points month on month. RMB loans registered an increase of RMB 271.
5 billion in the month, down RMB 31.3 billion year on year. By sector, loans to households increased by RMB 50.4 billion, down RMB 77.9 billion from the same period last year. In breakdown, short-term loans and long and medium-term loans grew by RMB 23.1 billion and 27.3 billion respectively. Loans to non-financial companies and other sectors rose by RMB 221.
1 billion, RMB 46.5 billion more than the growth in the same period last year. In breakdown, short-term loans, long and medium-term loans and bill financing increased by RMB 39.4 billion, 123.1 billion and 52.8 billion respectively. From January to August, RMB loans rose by RMB 3.1 trillion, accelerating by RMB 29.
1 billion year on year. At end-August, outstanding foreign currency loans of financial institutions totaled US$271.7 billion, up 37.84% year on year. Foreign currency loans decreased by US$3 billion in the month, as compared with the US$7.7 billion increase in the same period last year.
RMB deposits grew 19.28% year on year. At end-August, outstanding RMB and foreign currency deposits of financial institutions totaled RMB 46.2 trillion with a year-on-year growth of 18.57%. Outstanding RMB deposits increased 19.28% year on year to RMB 45 trillion, down 0.32 percentage points month on month.
RMB deposits registered an increase of RMB 650.1 billion in the month, up RMB 3.9 billion year on year. By sector, household deposits grew by RMB 340.4 billion, accelerating by RMB 382.3 billion year on year; deposits of non-financial companies grew by RMB 360.1 billion, RMB 307.7 billion less than the growth in the same period last year; fiscal deposits declined by RMB 39.
5 billion, representing a further drop of RMB 25.3 billion year on year. From January to August, RMB deposits recorded a RMB 6.1 trillion increase, RMB 1.9 trillion more than the growth in the same period last year. At end-August, outstanding foreign currency deposits of financial institutions rose 7.
17% year on year to US$174.3 billion. Foreign currency deposits surged by US$4.9 billion in the month, up US$4.6 billion year on year.
RMB transactions in the inter-bank lending market were brisk and market rates remained stable. In August 2008, RMB transactions in the inter-bank lending market amounted to RMB 10.16 trillion. The average daily turnover reached RMB 483.6 billion, increasing by 62.0%, or RMB 185.1 billion, year on year.
In August, the monthly weighted interest rate for inter-bank lending averaged 2.8%, up 0.11 and 0.8 percentage points from the previous month and the same period last year respectively. The monthly weighted interest rate for bond pledged repo averaged 2.86%, up 0.1 percentage points month on month and 0.81 percentage points year on year.
