Shadow Banking / CFS Monetary Measures for June 2015

Today we release CFS monetary and financial measures for June 2015.

Market finance or “shadow banking” fell further through June, despite signs of stabilization earlier in the year.  In June, market finance in real terms was -0.9% over the month relative to a peak gain earlier in the year of +0.2% in February.

A sustained reversal of the declines would reduce financial market risks and put economic growth on a stronger footing.  Although seemingly arcane, market finance provides the fuel for corporations in the form of commercial paper and liquidity for financial markets via money market funds and repurchase agreements.

CFS Divisia M4, which is the broadest and most important measure of money, grew by 3.0% in June 2015 on a year-over-year basis versus 2.8% in May.

CFS Divisia monetary measures were developed under the direction of Professor William A. Barnett – one of the world’s leading experts on monetary and financial aggregation theory.

For the Market Finance Supplement:
http://www.centerforfinancialstability.org/amfm/AMFM_mfs_072215.pdf

For Monetary and Financial Data Release Report:
http://www.centerforfinancialstability.org/amfm/Divisia_Jun15.pdf

Sincerely yours,
Lawrence Goodman

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