Shadow banking / CFS monetary measures for February 2015…

After over 80 months of continuous declines in market finance or shadow banking, some evidence of stabilization exists. In February, market finance – money market funds, repurchase agreements, and commercial paper – reached $4.124 trillion up modestly from a November 2014 floor of $4.111 trillion in real February 2015 terms.

The data reveal that since 2011, the needed correction in reducing the role of market finance in the economy has fallen too far and compromised financial market liquidity.

For more details:

Today we release CFS monetary and financial measures for February 2015. CFS Divisia M4, which is the broadest and most important measure of money, grew by 2.7% in February 2015 on a year-over-year basis versus 2.9% in January.

For today’s monetary and financial data release report: