December Sees Strong Growth in Bank Deposits
NBP data: End-of-year figures show an expansion in money supply and slower growth in lending to households.
Preliminary data released by the NBP on 13 January concerning money supply in the last month of 2011 show the M3 aggregate to have increased by 3.2% on its November value. This is a seasonal surge – in the previous eleven months of the year the average monthly rate of M3 growth stood at 0.8%.
Notes and coins in circulation expanded by PLN 2.4 bn (with total cash in circulation amounting to PLN 101.8 bn). This was natural, as notes and coins prevail in Christmas shopping transactions. Households’ bank deposits increased by as much as PLN 13.5 bn, while corporate deposits grew by PLN 9.2 bn.
Nominal household debt due to banks decreased by 0.7%, although – as NBP analysts point out – it rose by 0.2% when adjusted for exchange rate changes. Even though loans to corporates typically slowed down at the end of the year, in December 2011 they expanded by PLN 2.3 bn in real terms, i.e. by 0.9%, which is a sign of recovery, especially in the investment loan segment.
See: M3 and its counterparts