European Central Bank report reveals slowing liquidity growth, rise in corporate deposits in June

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 27th Jul, 2026) The annual growth rate of the broad monetary aggregate M3 in the euro area increased to 3.3% in June 2026 from 3.0% in May, averaging 3.0% in the three months up to June., according to the European Central Bank's report on monetary developments in the euro area for June 2026.

The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises Currency in circulation and overnight deposits, decreased to 3.4% in June from 3.7% in May.

The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 2.8% in June from 1.4% in May. The annual growth rate of marketable instruments (M3-M2) increased to 4.5% in June from 3.2% in May.

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households decreased to 2.6% in June from 2.8% in May, while the annual growth rate of deposits placed by non-financial corporations increased to 5.

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3% in June from 4.2% in May.

Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 1.6% in June from ‑0.6% in May.

The annual growth rate of total claims on euro area residents stood at 2.4% in June 2026, unchanged from the previous month. The annual growth rate of claims on general government increased to 0.3% in June from 0.1% in May, while the annual growth rate of claims on the private sector stood at 3.3% in June, unchanged from the previous month.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) stood at 3.9% in June, unchanged from the previous month. Within the non-financial private sector, the annual growth rate of adjusted loans to households stood at 3.0% in June, and the annual growth rate of adjusted loans to non-financial corporations stood at 4.0% in June, both unchanged from the previous month.