ID :
59993
Mon, 05/11/2009 - 15:28
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Shortlink :
https://oananews.org//node/59993
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S. Korea's money supply growth slows to 3-month low in March
SEOUL, May 11 (Yonhap) -- South Korea's money supply grew at the slowest pace in
three months in March as local banks remained wary of expanding loans amid the
slumping economy, the central bank said Monday.
The country's liquidity aggregate reached 2,340.9 trillion won (US$1.89 trillion)
as of the end of March, up 10.6 percent from a year earlier and moderating from a
10.8 percent the previous month, according to the Bank of Korea (BOK). It marked
the slowest growth since December 2008.
The liquidity aggregate, the broadest measure of the nation's money supply,
covers currency in circulation, all types of deposits at financial institutions
and state and corporate bonds.
"Slowing growth in the money supply in March came despite a large surplus of the
current account as lenders are cautious about extending credit to households and
firms," the BOK said.
The data comes a day before the BOK makes its monthly interest-rate decision. The
central bank is widely forecast to freeze the benchmark seven-day repo rate at a
record low of 2 percent for the third straight month.
The BOK had made six consecutive rate cuts totaling 3.25 percentage points until
February in a bid to bolster the slowing economy.
Meanwhile, the BOK said a narrower measure of the money supply, called M2,
advanced 11.1 percent on-year in March, with its growth hitting a 17-month low.
M2 covers currency in circulation and all types of deposits with maturity less
than two years at lenders and non-banking financial institutions, though not with
insurers and brokerage houses.
Despite a series of rate cuts by the BOK, growth of the country's M2 has eased as
local banks remained wary of increasing lending on fears over rising default
rates and distressed loans.
BOK Gov. Lee Seong-tae told lawmakers in late April that liquidity in the
financial system cannot be seen as excessively high because the growth pace of
the money supply is slowing.
In a separate report, the BOK said the gain in M2 is estimated to have slowed in
April to mid-10 percent, mainly due to banks' risk-aversion.
sooyeon@yna.co.kr
(END)
three months in March as local banks remained wary of expanding loans amid the
slumping economy, the central bank said Monday.
The country's liquidity aggregate reached 2,340.9 trillion won (US$1.89 trillion)
as of the end of March, up 10.6 percent from a year earlier and moderating from a
10.8 percent the previous month, according to the Bank of Korea (BOK). It marked
the slowest growth since December 2008.
The liquidity aggregate, the broadest measure of the nation's money supply,
covers currency in circulation, all types of deposits at financial institutions
and state and corporate bonds.
"Slowing growth in the money supply in March came despite a large surplus of the
current account as lenders are cautious about extending credit to households and
firms," the BOK said.
The data comes a day before the BOK makes its monthly interest-rate decision. The
central bank is widely forecast to freeze the benchmark seven-day repo rate at a
record low of 2 percent for the third straight month.
The BOK had made six consecutive rate cuts totaling 3.25 percentage points until
February in a bid to bolster the slowing economy.
Meanwhile, the BOK said a narrower measure of the money supply, called M2,
advanced 11.1 percent on-year in March, with its growth hitting a 17-month low.
M2 covers currency in circulation and all types of deposits with maturity less
than two years at lenders and non-banking financial institutions, though not with
insurers and brokerage houses.
Despite a series of rate cuts by the BOK, growth of the country's M2 has eased as
local banks remained wary of increasing lending on fears over rising default
rates and distressed loans.
BOK Gov. Lee Seong-tae told lawmakers in late April that liquidity in the
financial system cannot be seen as excessively high because the growth pace of
the money supply is slowing.
In a separate report, the BOK said the gain in M2 is estimated to have slowed in
April to mid-10 percent, mainly due to banks' risk-aversion.
sooyeon@yna.co.kr
(END)
