Central Bank of Taiwan reports June M2 growth accelerated to 8.13%, loans and investments growth slowed to 8.80%

The Central Bank of Taiwan published its June monetary aggregates and financial conditions data, showing a divergence between money growth and credit growth. Annual M2 growth increased to 8.13%, while annual M1B growth eased to 9.40%. At the same time, the annual growth rate of total outstanding loans and investments of monetary financial institutions fell to 8.80% at the end of June from 9.37% a month earlier. On a daily average basis, M1B and M2 rose 0.42% and 0.45% month on month, respectively. The slowdown in M1B was attributed mainly to weaker growth in securities settlement deposits, while the pickup in M2 reflected faster annual growth in foreign currency deposits. Loans and investments of monetary financial institutions increased 0.19% on a cost basis over the month, but annual growth slowed because of weaker expansion in bank claims on the private sector and the government. When lending by life insurance companies and reclassified and written-off loans are included, total outstanding loans and investments of financial institutions grew 7.32% year on year, down from 7.80% at the end of the previous month. For the first six months of 2026, the average annual growth rates were 7.96% for M1B and 6.46% for M2.