Money & Banking Analytical Framework 4: Monetary Survey

The monetary survey is the core of money and banking statistics, monitoring some of the most useful monetary aggregates for economic analysis.

Data for monetary authorities and deposit money banks are consolidated into a monetary survey. The monetary survey measures the size and origin of narrow money (M1), which includes transferable deposits and currency outside banks, and quasi money, which consists of the liabilities of these institutions in the form of time and savings deposits in addition to foreign currency deposits. Broad money (M2), consists of narrow money plus quasi money, and equals total liabilities of the monetary survey.

The monetary survey - Analytical balance sheet of the banking system

Net foreign assets is the sum of the monetary authorities foreign assets ( - gold, holdings of SDRs, reserve position in the Fund, foreign exchange (convertible / inconvertible), regional monetary cooperation funds, and other foreign assets) and the deposit money banks foreign assets ( - gold and other precious metals, claims on nonresident banks (e.g., shares in nonresident banks, foreign currency), and claims on other non-residents (e.g., claims on foreign government in the form of treasury bills, and loans) less any foreign liabilities.

Domestic credit consists on claims on government and other domestic sectors – non-financial public enterprises, non-monetary financial institutions, private businesses, households, and nonprofit institutions. These claims on domestic sectors include bills, bonds, and securities, loans and advances, as well as credits.

On the liability side, the monetary survey shows the overall liquidity generated by the banking system, the stock of money. If defined narrowly, the stock of money consists of currency in circulation outside banks plus demand deposits in banks. A broader definition of money includes, in addition to narrow money, quasi money that consists of time, savings, and foreign currency deposits in the banking system.

Narrow money – M1 consists of currency in circulation outside banks plus demand deposits in banks that can be drawn upon using checks, ATM etc.

Broad money – M2 consists of currency in circulation outside banks plus demand deposits – narrow money – plus time, savings, and foreign currency deposits – quasi money.

Other items, net comprises other unclassified balance sheet items. Included is also any statistical discrepancy.