Featured statistic: 14,4%

Date 16 May 2007

As already emerged from the ECB monetary statistics published end of April, the Dutch contribution to euro area monetary aggregates has grown robustly since the beginning of this year. End of March, this contribution had risen by 14.4% on the year earlier level. This is above the average for the euro area, where monetary growth recently increased to 10.9%

Looking more specifically at the Dutch contribution (see the Statistical Bulletin, Tables 2.4 and 2.2.2), we see that in particular overnight deposits and deposits with agreed maturity placed at banks in the Netherlands have surged. Besides households, this increase comes from companies and institutions in the financial sector (with the exception of banks), among others.

Especially the development of deposits of the latter category, the ‘Other financial institutions’, accounts for the recent growth acceleration. Other financial institutions are relatively strongly represented in the Netherlands. Innovative financial transactions and constructions, like securitisations, are a key factor in the relatively quick growth. Formerly executed in part by banks between themselves, nowadays these transactions and constructions run through other financial institutions. Banks usually opt for this system in order to ensure a better risk spread and increase their credit potential.

Growth of Dutch distribution to euro area monthly aggregates