S. Korea's money supply growth slows in September
6/11/2008 17:54
The Bank of Korea (BOK) said today that the growth of South Korea's money
supply slowed in September as local banks cut down on lending amid a credit
crunch and a business slump.
According to the BOK, liquidity aggregate gained
12.1 percent from a year earlier in September, posting 2,233.8 trillion won
(US$1. 7 trillion).
In August, the money supply growth jumped 13.3 percent
from a year ago. The BOK added that M2, a narrower measure of the money supply,
also grew at 14 percent in September, a slower pace compared to August.
"The
growth of the M2 slowed down as the country posted a current account deficit and
liquidity provided by financial institutions to the private sector eased," the
BOK said.
The liquidity aggregate is the broadest measure of the nation's
money supply covering currency in circulation, all types of deposits at
financial institutions, and state and corporate bonds.
Meanwhile, 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.
Xinhua
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