Revision of the Definitions of Money Stock Components
April 16, 1999
Bank of Japan
Research and Statistics Department
In line with recent changes in financial conditions, the Research and Statistics Department will revise the definitions of money stock components, as follows.
1. Conversion of the definitions of money stock components to a new basis
From the release of money stock data for April 1998, the Research and Statistics Department has published the data not only on a current basis but also on a new and broader basis. The new and broader basis includes the data for "foreign banks in Japan", "domestically licensed foreign trust banks", and "central organizations of financial institutions for small business, agriculture, forestry, and fisheries1". As one year has now passed, enabling the calculation of comparisons with the previous year, from the next release of data for this April (on May 21), the money stock data will henceforth be aggregated on the new and broader basis. The attached appendix provides a sample of the new format.
2. Inclusion of data on commercial paper issued by the financial institutions into broadly-defined liquidity
Since depository institutions were permitted to issue commercial paper in June 1998, they have begun fundraising through commercial paper. Accordingly, from the next release of money stock data for April, broadly-defined liquidity2 will include commercial paper issued by the financial institutions (including insurance companies, which have always been permitted to issue commercial paper)3.
Because the data on commercial paper issued by the financial institutions have been compiled for the past 12 months, the outstanding balance data on broadly-defined liquidity including commercial paper will begin from April 1998 and the corresponding growth rate data will begin from April 1999. For reference, the Department will also present outstanding balance data that does not include commercial paper for one year from next month's release.
- The classification of the financial instruments deposited in these central organizations follows that of their affiliated institutions; data of the Zenshinren Bank are classified into M1, M2+CDs, and broadly-defined liquidity, and those of the Shinkumi Federation Bank, National Federation of Labor Credit Associations, credit federations of agricultural cooperatives, and credit federations of fishery cooperatives are classified into M3+CDs.
- Please see the attached reference.
- M1, M2+CDs, and M3+CDs will not include commercial paper.
[For any further inquiries, please contact Financial Statistics Group, Economic Statistics Division: "email@example.com".]
Definition of "Money Stock Statistics"
|Indicator||Definition (Scope of each indicator)|
|M1||Cash Currency in Circulation + Deposit Money (Demand Deposits)|
|M3+CDs||M2 + CDs + the deposits and CDs of Post Offices, The Shinkumi Federation Bank, Credit Cooperatives,National Federation of Labor Credit Associations, Labor Credit Associations, Credit Federations of Agricultural Cooperatives, Agricultural Cooperatives, Credit Federations of Fishery Cooperatives, and Fishery Cooperatives + money trusts and loan trusts of Domestically Licensed Banks (including Foreign Trust Banks)|
|Broadly-defined Liquidity||M3 + CDs + money deposited other than money in trust of Domestically Licensed Banks (including Foreign Trust Banks) + investment trusts + bonds with repurchase agreement + bank debentures + government bonds (including financing bills) + foreign bonds + commercial paper issued by the financial institutions|
Broadly-defined credit aggregate
|The outstanding of funds which central government, public corporations & local governments, corporate business sector and personal sector raised by borrowings (excluding foreign credit), securities and commercial paper. Concerning "stocks", the price used is as that of the end of 1994.|