Monetary developments 2020Dec
Published on 29 January 2021
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Strong growth of the French component of the M3
On an annual basis, growth in overnight deposits resumes in December (+ 22.8 %, up from + 21.7 % in November and + 22.4 % in October): the outstanding amount increases by € 260 Bn over the whole of 2020 (up from + € 112 Bn in 2019).
The M2 - M1 aggregate rises (+ 9.7 % year-on-year, up from + 8.2 % in November) under the combined effect of the increase in saving accounts outstandings (+ 9.4 %, up from + 9.2 % in November) and deposits with agreed maturity of up to 2 years (+ 11.0 % up from + 2.8 %). Overall over the year, M2-M1 outstanding amount increases by € 79 Bn (after + € 22 Bn in 2019).
The M3 - M2 aggregate rises strongly in December, driven mainly by the increase in money market fund shares/units outstanding amounts (+ 20.4 %, up from + 12.2 % in November).
After taking into account monetary assets and liabilities vis-à-vis other monetary union members, the growth of the French component of the M3 aggregate continues to accelerate, reaching an annualized rate of 17.5% in December 2020 (up from + 15.3 % in November). This is the highest point since 1978, the previous peak dating from March 1993 (+17.3% on an annual basis).
The M2 - M1 aggregate rises (+ 9.7 % year-on-year, up from + 8.2 % in November) under the combined effect of the increase in saving accounts outstandings (+ 9.4 %, up from + 9.2 % in November) and deposits with agreed maturity of up to 2 years (+ 11.0 % up from + 2.8 %). Overall over the year, M2-M1 outstanding amount increases by € 79 Bn (after + € 22 Bn in 2019).
The M3 - M2 aggregate rises strongly in December, driven mainly by the increase in money market fund shares/units outstanding amounts (+ 20.4 %, up from + 12.2 % in November).
After taking into account monetary assets and liabilities vis-à-vis other monetary union members, the growth of the French component of the M3 aggregate continues to accelerate, reaching an annualized rate of 17.5% in December 2020 (up from + 15.3 % in November). This is the highest point since 1978, the previous peak dating from March 1993 (+17.3% on an annual basis).
France : monetary resources of Monetary Financial Institutions![]()
| Outstandings (in € Bn) (a) | Annual growth rate (in %) (a) | |||
| Dec- 2020 | Oct- 2020 | Nov- 2020 | Dec- 2020 | |
| Overnight deposits | 1,399 | 22.4 | 21.7 | 22.8 |
| = Domestic resources included in M1 | 1,399 | 22.4 | 21.7 | 22.8 |
| Domestic resources included in M1, 3-month moving average | 23.2 | 22.5 | 22.3 | |
| Deposits with agreed maturity of up to 2 years | 127 | 0.7 | 2.8 | 11.0 |
| + Saving accounts | 768 | 8.5 | 9.2 | 9.4 |
| = Domestic resources included in M2-M1 | 895 | 7.3 | 8.2 | 9.7 |
| Domestic resources included in M2-M1, 3-month moving average | 6.5 | 7.3 | 8.4 | |
| MMF shares | 282 | 10.1 | 12.2 | 20.4 |
| + Repurchase agreements | 30 | 47.3 | 58.1 | 23.5 |
| + Debt securities issued with a maturity of up to 2 years | 50 | -18.8 | -15.1 | -11.2 |
| = Domestic resources included in M3-M2 | 362 | 7.2 | 10.0 | 15.0 |
| Domestic resources included in M3-M2, 3-month moving average | 5.0 | 7.5 | 10.7 | |
| Sum of domestic resources included in M3 | 2,656 | 14.8 | 15.2 | 17.0 |
| Sum of domestic resources included in M3 , 3-month moving average | 14.5 | 14.9 | 15.7 | |
| + Monetary external liabilities vis-à-vis other monetary union members | 263 | 5.4 | 8.4 | 15.3 |
| - Monetary external assets vis-à-vis other monetary union members | 44 | -20.9 | -17.3 | -16.0 |
| = French component of euro area monetary aggregate M3 | 2,875 | 14.6 | 15.3 | 17.5 |
| French component of euro area monetary aggregate M3, 3-month moving average | 14.3 | 15.1 | 15.8 | |
(a) Seasonally-adjusted data.
Source : Banque de France
Contributions to the growth of the French component of M3![]()
(Annual growth rate in %)
Additional information
The outstanding amount of monetary claims (excluding coins and banknotes) consists of claims with an initial maturity of up to and including 2 years that monetary counterparts (basically households, non-financial corporations, general government excluding central government, insurance corporations, non-money market funds, investment funds and financial vehicle corporations) hold against monetary financial institutions (deposit-taking institutions, sociétés de financement under French law, Caisse des dépôts et consignations, MMF and the central bank).
Saving accounts include regulated saving accounts, i.e. livrets A, livrets de développement durable, comptes d'épargne logement, livrets d'épargne populaire, and non-regulated saving accounts, i.e. livrets jeunes and livrets ordinaires. One part of the amounts held on regulated saving accounts is transferred by deposit-taking institutions to a fund managed by the Caisse des dépôts et consignations; the other part remains in banks' balance sheets. Debt securities with maturity of up to 2 years mainly include certificates of deposit (short term paper) issued by French deposit-taking institutions and subscribed by neither MMF nor deposit-taking institutions counterparts.
Annual growth rates are adjusted for reclassifications and revaluations but not for foreign exchange rate effects.
Saving accounts include regulated saving accounts, i.e. livrets A, livrets de développement durable, comptes d'épargne logement, livrets d'épargne populaire, and non-regulated saving accounts, i.e. livrets jeunes and livrets ordinaires. One part of the amounts held on regulated saving accounts is transferred by deposit-taking institutions to a fund managed by the Caisse des dépôts et consignations; the other part remains in banks' balance sheets. Debt securities with maturity of up to 2 years mainly include certificates of deposit (short term paper) issued by French deposit-taking institutions and subscribed by neither MMF nor deposit-taking institutions counterparts.
Annual growth rates are adjusted for reclassifications and revaluations but not for foreign exchange rate effects.
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Updated on 29 January 2021