Press Office Threadneedle Street London EC2R 8AH T 020 7601 4411 F 020 7601 5460 press@bankofengland.co.uk www.bankofengland.co.

uk

Published on 30 July 2012 at 9:30

Sectoral breakdown of aggregate M4 and M4 lending: June 2012(1)

M4 excluding intermediate OFCs increased by 7.3 billion in June, compared to an average monthly increase of 3.4 billion in the previous six months. The three-month annualised growth rate was 2.9%. M4 lending excluding intermediate OFCs decreased by 4.5 billion in June, compared to an average monthly increase of 1.3 billion in the previous six months. The three-month annualised growth rate was 0.4%.

Table A: M4 and M4 lending excluding interm ediate OFCs Seasonally adjusted M4 excluding interm ediate OFCs

M4 lending (excluding the effects of securitisations etc.) excluding interm ediate OFCs

Amount outstanding billions 2011 Q3 Q4 Q1 2012 Q2 2012 May Jun B53Q 1 564.5 1 552.0 1 577.5 1 596.0 1 589.5 1 596.0

Growth rates Grow th Rates

Change billions B54Q 20.3 -4.9 26.7 11.5 -2.8 7.3

Per cent 1m B68P -0.2 0.5

(a)

1Q/3m (ann) B55Q 5.4 -1.3 7.1 2.9 3.4 2.9

Percentage changes on year earlier

4Q/12m B56Q 2.4 1.3 3.0 3.5 3.0 3.5

Amount outstanding billions B57Q 1 860.5 1 861.0 1 861.0 1 860.0 1 864.4 1 860.0

Growth Rates Grow th rates

Change billions B58Q 12.5 6.8 -1.5 2.1 1.0 -4.5

Per cent 1m B66P 0.1 -0.2 1Q/3m (ann) 4Q/12m B59Q 2.7 1.5 -0.3 0.4 2.3 0.4
Percentage changes on year earlier

B62Q 1.2 1.6 1.2 1.1 1.6 1.1

24 22 20 18 16 14 12 10 8 6 4 2 0 -2 -4 -6 -8

Chart 1: M4 excluding intermediate OFCs

24 22 20 18 16 14 12 10 8 6 4 2 0 -2 -4 -6 -8

Chart 2: M4Lx excluding intermediate OFCs(a)(b)

2006

2007

2008

2009

2010

2011
12-month

2012

2006

2007

2008

2009

2010

2011
12-month

2012

3-month annualised

3-month annualised

(a) (b)

Quarterly data. Excluding the effects of securitisations, etc.

The household sectors holdings of M4 increased by 3.6 billion in June, compared to an average monthly increase of 4.0 billion in the previous six months. The annual growth rate was 4.2%. M4 lending (excluding the effects of securitisations etc) to the household sector was broadly unchanged in June, compared to an average monthly increase of 0.6 billion in the previous six months. The annual growth rate was 0.7%. Private non-financial corporations (PNFCs) holdings of M4 decreased by 1.7 billion in June, compared to an average monthly increase of 0.6 billion in the previous six months. The annual growth rate was 2.0%. M4 lending (excluding the effects of securitisations etc) to PNFCs decreased by 2.2 billion in June, compared to an average monthly decrease of 1.6 billion in the previous six months. The annual growth rate was -3.9%. Holdings of M4 by non-intermediate other financial corporations (NIOFCs) increased by 5.4 billion in June. The annual growth rate was 1.8%. M4 lending (excluding the effects of securitisation etc) to NIOFCs decreased by 2.3 billion in June. The annual growth rate was 11.9%.
(1) With the 28 May 2012 bank holiday moving to 4 June and an additional bank holiday on 5 June, to celebrate the Queens Diamond Jubilee, care should be

taken when interpreting or comparing the data points around this period. The seasonal adjustment process has not automatically taken this effect into account. Once additional monthly data are available, the Bank of England will investigate the effect and judge whether refinements to the seasonal adjustment process are appropriate.

Next release - 30 August 2012. Release available online at www.bankofengland.co.uk/statistics/Pages/calendar/default.aspx Bank of England. For requests on copyright please email mfsd_editor@bankofengland.co.uk or call 020 7601 5432

Table B: Sectoral breakdow n of M4 ex and M4L ex (excluding the effects of securitisations etc.) Seasonally adjusted M4 excluding interm ediate OFCs Household sector Private non-financial Non-interm ediate other corporations financial corporations Grow thrates Grow thrates Grow thrates Growth rates Growth rates Growth rates Change Per cent Change Per cent Change Per cent billions 1Q/3m (ann) 4Q/12m billions 1Q/3m (ann) 4Q/12m billions 1Q/3m (ann) 4Q/12m VVHS 11.2 9.7 12.1 11.5 5.3 3.6 VVHU 4.4 3.7 4.6 4.3 4.1 4.3 VVHW 2.4 2.7 3.3 4.2 4.0 4.2 VVHM 1.1 1.1 1.6 1.1 1.4 -1.7 VVHO 1.7 1.8 2.6 1.7 2.1 1.7 VVHQ -0.4 1.3 2.2 2.0 3.5 2.0 B64Q 8.0 -15.7 13.0 -1.1 -9.5 5.4 B65Q 13.5 -22.4 23.9 -1.8 2.3 -1.7 B66Q 5.1 -4.5 2.5 1.8 -1.3 1.8

2011 Q3 Q4 Q1 2012 Q2 2012 May Jun

M4 lending (excluding the effects of securitisations etc.) excluding interm ediate OFCs VWNV 2.7 2.1 2.3 1.2 0.4 0.0 VWEI 0.9 0.7 0.8 0.4 0.8 0.4 VWNZ 0.8 0.8 0.8 0.7 0.7 0.7 VWNQ -4.8 -4.8 -2.1 -5.1 -1.8 -2.2
Percentage changes on year earlier

2011 Q3 Q4 Q1 2012 Q2 2012 May Jun

VWNS -4.3 -4.4 -2.0 -4.8 -3.4 -4.8

VWNU -2.0 -2.9 -3.0 -3.9 -3.3 -3.9

B68Q 14.6 9.5 -1.6 6.0 2.4 -2.3

B69Q 26.1 16.1 -2.5 9.6 19.6 9.6

(a)(b)

B72Q 8.8 13.8 11.3 11.8 14.7 11.9

Percentage changes on year earlier 30

Chart 3: Sectoral M4 excluding intermediate OFCs (a)

Chart 4: Sectoral M4Lx excluding intermediate OFCs

30 25
20 15

25 20 15 10 5 0 -5 -10 -15 Q1 2006 Q3 Q1 2007 Q3 Q1 2008 Q3 Q1 2009

PNFCs

10 5 0 -5 -10 -15 Q1 2006 Q3 Q1 2007 Q3 Q1 2008 Q3 Q1 2009

PNFCs

Q3

Q1 2010

Q3

Q1 2011

Q3

Q1 2012

Q3

Q1 2010

Q3

Q1 2011

Q3

Q1 2012

NIOFCs

Household sector

NIOFCs

Household sector

(a) (b)

Quarterly data. Excluding the effects of securitisations, etc.

PNFCs total finance raised from UK MFIs and capital markets was 0.1 billion in June, following a net redemption of 3.4 billion in May. Further information can be found in the Capital Issuance release of 19 July 2012, see www.bankofengland.co.uk/statistics/Pages/ci/2012/jun/default.aspx.

Table C: A w ider m easure of PNFCs' financing billions Seasonally adjusted Sterling Foreign Sterling capital currency loans by UK m arket loans by UK MFIs (a) issuance (b) MFIs (c) 2012 Mar Apr May Jun BC48 -1.8 -0.2 -0.7 -1.4 BF86 -0.8 0.2 -1.7 0.0 BC49 -0.2 0.7 -0.9 1.5

Foreign currency capital m arket issuance (b) BF87 2.9 0.8 0.5 1.1

Funds raised by PNFCs from UK MFIs and capital m arkets (a) (d) VYVV 0.2 1.1 -3.4 0.1

of which : all currency loans by UK MFIs (a)(e) B93K -2.0 0.4 -1.6 0.2

(a) (b) (c) (d) (e)

Sterling loans exclude the effects of securitisations and loan transfers. Not seasonally adjusted (capital issues series have been found not to be significantly seasonal). This series has been found not to be significantly seasonal, but will be reviewed for seasonality on a regular basis. Owing to the method of the seasonal adjustment of this series, it may not equal the sum of its component breakdown. The sum of series BC48 and BC49, which may not equal the sum of its component breakdown due to rounding.

Next release - 30 August 2012. Release available online at www.bankofengland.co.uk/statistics/Pages/calendar/default.aspx Bank of England. For requests on copyright please email mfsd_editor@bankofengland.co.uk or call 020 7601 5432

Table D: M4 and M4 lending Seasonally adjusted M4

Growth rates Grow th rates Per cent 1m 12m VQJS VQJW

M4 lending
Growth rates Grow th rates Per cent 1m 12m VQJQ VQJU

M4 lending (exc. the effects of securitisations etc.) Change billions VWVL -9.6 6.4 -11.4 -29.5
Growth Grow th rates Per cent 1m 12m VWVM VWVP

Change billions AUZJ 2012 Mar Apr May Jun -15.0 20.0 -1.1 -33.1

Change billions AVBR -9.6 6.4 -11.3 -29.2

-0.7 1.0 -0.1 -1.6

-4.8 -4.0 -4.1 -5.2

-0.4 0.3 -0.5 -1.3

-4.3 -4.5 -4.7 -6.2

-0.4 0.3 -0.5 -1.3

-4.3 -4.5 -4.7 -6.1

Notes to Editors 1 The data for M4 lending and sectoral M4 lending excluding intermediate OFCs shown in Table A and B (and the accompanying text and chart) exclude the effects of securitisations and loan transfers. Growth rates excluding the effects of securitisations etc, which more accurately reflect the indebtedness of borrowers, are used in the Bank of England Inflation Report and in the minutes of the meetings of the Monetary Policy Committee. The household sector comprises individuals, unincorporated businesses other than unlimited liability partnerships (i.e. sole traders) and non-profit institutions serving households (e.g. charities and universities). Data for total lending to individuals, i.e. including that by non-MFI mortgage and credit grantors, are available in the Lending to Individuals statistical release, also published today www.bankofengland.co.uk/statistics/Pages/li/2012/jun/default.aspx. Table C shows a wider measure of financing by PNFCs. This measure encompasses their sterling and foreign currency borrowing from UK MFIs (but excluding MFIs net purchases of securities issued by PNFCs) and the funds raised through issues of sterling and foreign currency equities, bonds and commercial paper in the UK. Quarterly M4 excluding intermediate OFCs is calculated as households M4 (seasonally adjusted) plus PNFCs M4 (seasonally adjusted) plus sterling deposits from non-intermediate OFCs (seasonally adjusted): www.bankofengland.co.uk/statistics/Pages/iadb/notesiadb/m4adjusted.aspx. M4Lx (i.e. M4 lending excluding the effects of securitisations etc) excluding lending to intermediate OFCs is calculated as household M4Lx (seasonally adjusted) plus PNFC M4Lx (seasonally adjusted) plus sterling loans and advances to non-intermediate OFCs (seasonally adjusted): www.bankofengland.co.uk/statistics/Pages/iadb/notesiadb/m4lxadjusted.aspx. Given the short run of monthly data available for non intermediate OFCs robust seasonal adjustment of the monthly series is not currently possible. Monthly seasonally adjusted data are estimates, the construction of which is detailed in an article in the December 2010 Bankstats (see www.bankofengland.co.uk/statistics/Documents/ms/articles/art1nov10.pdf. Intermediate OFCs are defined as: non-bank credit grantors; mortgage and housing credit corporations; bank holding companies; and other activities auxiliary to financial intermediation. Sterling deposits from and sterling loans and advances to 'other financial intermediaries' undertaken with banks and building societies in their own financial group are included in intermediate OFCs. Banks' and building societies' holdings of securities issued by their own securitisation vehicles are also included in intermediate OFCs. The series codes for non-seasonally adjusted data are as follows:

RPQ/RPM

Amount outstanding B3DQ

Change

1m

1Q (ann) /3m(ann) B3DG /B3D8

4Q/12m

M4 excluding intermediate OFCs M4Lx excluding intermediate OFCs 5

B3DS

B3D4

B3DO/B3DC

B3DR

B3DT

B3D5

B3DH/B3D9

B3DP/B3DD

The Statistical Interactive Database (at www.bankofengland.co.uk//boeapps/iadb/newintermed.asp) provides long runs of statistical data with comprehensive search options and the ability to download in a variety of formats. The series codes are listed in the tables in this release.

Next release - 30 August 2012. Release available online at www.bankofengland.co.uk/statistics/Pages/calendar/default.aspx Bank of England. For requests on copyright please email mfsd_editor@bankofengland.co.uk or call 020 7601 5432