The annual rate of change of M3 stood at 0.2% in July 2010, unchanged from the previous month. The three-month average of the annual rates of change of M3 over the period May 2010 - July 2010 stood at 0.1%, compared with 0.0% in the period April 2010 - June 2010.

Regarding the main components of M3, the annual rate of growth of M1 decreased to 8.1% in July 2010, from 9.2% in June. The annual rate of change of short-term deposits other than overnight deposits increased to -6.0% in July, from -7.1% in the previous month. The annual rate of change of marketable instruments decreased to -8.3% in July, from -7.6% in June.

Turning to the main counterparts of M3 on the asset side of the consolidated balance sheet of the MFI sector, the annual growth rate of total credit granted to euro area residents increased to 1.9% in July 2010, from 1.5% in the previous month. The annual rate of growth of credit extended to general government decreased to 7.6% in July, from 8.1% in June, while the annual growth of credit extended to the private sector increased to 0.6% in July, from 0.1% in the previous month. Among the components of the latter, the annual rate of change of loans to the private sector increased to 0.9% in July, from 0.5% in the previous month (adjusted for loan sales and securitisation2 the annual growth rate of loans to the private sector increased to 1.0%, from 0.5% in the previous month). The annual rate of change of loans to non-financial corporations increased to -1.3% in July, from -1.6% in June. The annual growth rate of loans to households stood at 2.8% in July, unchanged from the previous month. The annual rate of growth of lending for house purchase increased to 3.5% in July, from 3.3% in the previous month. The annual rate of change of consumer credit decreased to -0.6% in July, from -0.4% in June, while the annual growth rate of other lending to households decreased to 2.6% in July, from 3.0% in the previous month. Finally, the annual rate of growth of loans to non-monetary financial intermediaries (except insurance corporations and pension funds) increased to 2.2% in July, from 1.0% in the previous month.

Over the 12 months up to July 2010, the net external asset position of the euro area MFI sector decreased by EUR 2 billion, compared with an increase of EUR 47 billion over the 12 months up to June. The annual rate of growth of longer-term financial liabilities of the MFI sector stood at 3.7% in July, compared with 3.8% in June.