June 2014
Bank of Japan
Research and Statistics Department

Basic information

Compilation section : Research and Statistics Department

Frequency of compilation : Monthly basis

Time of release :
Average amounts outstanding (preliminary): following month (basically on the seventh business day <figures for March and September: on the ninth business day>)
Average amounts outstanding (revised) and amounts outstanding at end of period: two months later (basically on the seventh business day <figures for February and August: on the ninth business day>)

Method of release : Bank of Japan Internet web site

Publications : Financial and Economic Statistics Monthly, Bank of Japan Statistics

Commencement of data : April 2003 (current series)

1. Definition

Money stock is basically defined as the quantity of money held by money holders (corporations, households, and local governments including municipal enterprises).  Corporations exclude depository institutions, insurance companies, government financial institutions, securities companies, Tanshi companies, etc.

Deposits, etc. held by financial institutions and the central government are not included.

2. Summary of Money Stock Indices

Indices	Definition and coverage	Money issuers
M1	Currency in circulation + deposit money -- Deposit money: Demand deposits (current deposits, ordinary deposits, saving deposits, deposits at notice, special deposits, and deposits for tax payments) minus checks and bills held by the surveyed financial institutions	All depository institutions (financial institutions surveyed for M2, the Japan Post Bank, the Shinkumi Federation Bank, Shinkumi Banks, the Rokinren Bank, Labour Banks, Prefectural Credit Federations of Agricultural Cooperatives, Agricultural Cooperatives, Prefectural Credit Federations of Fishery Cooperatives, and Fishery Coops)
M2	Currency in circulation + deposits	Bank of Japan, domestically licensed banks (excluding the Japan Post Bank), foreign banks in Japan, Shinkin Central Bank, Shinkin banks, the Norinchukin Bank, and the Shoko Chukin Bank
M3	M1 + quasi-money + CDs -- Quasi-money: Time deposits + fixed savings + installment savings + foreign currency deposits	Same as those of M1
L	M3 + pecuniary trusts + investment trusts + bank debentures + straight bonds issued by banks + commercial paper issued by financial institutions + government securities + foreign bonds	Financial institutions surveyed for M3, trust accounts of domestically licensed banks, central government, insurance companies etc., and foreign bonds issuing organizations

3. Differences in definitions between the current and former series (through April 2008)

The main differences between the current and former series (through April 2008) are as follows.

In the current series, securities companies, Tanshi companies, and nonresidents are excluded from money holders.

As regards M2 and M3, the differences between the two series mainly derive from the differences in the range of money holders and the estimation method of some data.  Apart from that, M2 and "M2 + CDs (former series)" have the same range of money issuers and financial assets (except for nonresident yen deposits).  Similarly, M3 and "M3 + CDs - money trusts (former series)" have the same range of money issuers and financial assets (except for nonresident yen deposits). M2 can be analyzed from 1967 onward using data of M2 + CDs in the former series; M3 can be analyzed from 1996 onward using data of "M3 + CDs - money trusts" in the former series.

As regards M1, the range of money issuers differs from that of "M1 (former series)." (in addition to the financial institutions surveyed for M1 in the former series deposit money of the Japan Post Bank and other financial institutions are included). As regards L, the range of financial assets differs from that of "Broadly-defined Liquidity (former series)."  L excludes "repurchase agreements and securities lending with cash collateral transactions" but includes (i) privately placed investment in "investment trusts" and (ii) "straight bonds issued by banks."

4. Notes on usage

Regular revision

Data for the Money Stock Statistics (MSS) are regularly revised as follows:

Data released in February, and August	Data from the previous seven months may be revised.
Data released in April and October	Data from the previous six months may be revised.
Data released every month (except for February, April, August, and October)	Data from the previous four months may be revised.
Data released in June (or May or July)	Data of L and Foreign Bonds from the previous year may be revised.
Data released in March	Seasonally adjusted data are revised from the beginning of the data.

Ad hoc revision (for the reporting of mistaken data by financial institutions)

If an error is found in the data reported by financial institutions, the MSS data are revised immediately.

In principle, the MSS data are retroactively revised approximately for the previous three years. The revised data are released on the nearest release date of the MSS from the receipt data of the wrong data. If the range of revision falls short of 0.1 percent of amounts outstanding of M3 (or amounts outstanding of M2 in case of wrong report by money issuers of M2), the MSS data are basically revised in either March or September.

Periodical revision of L

In the MSS, components of L (other than M3) are compiled using various statistics. These statistics are compiled based on information at a certain time so their accuracy inevitably deteriorates as changes occur to the financial and economic structure over time.

The periodical revision of L (other than M3) is basically conducted every three years, in addition to the ad hoc revisions to cope with the financial and economic structural changes. Ad hoc revisions are conducted when it is confirmed that the MSS will fully benefit from such revisions. As for the periodical revision, the compilation methods for L are reviewed and revised when necessary. The latest periodical revision was conducted in June 2014. For details, refer to "Periodical Revision of L -- Broadly-defined Liquidity."