Monetary developments in the euro area: February 2026

26 March 2026

• Annual growth rate of broad monetary aggregate M3 decreased to 3.0% in February 2026 from 3.2% in January (revised from 3.3%)
• Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 4.8% in February from 5.2% in January (revised from 5.3%)
• Annual growth rate of adjusted loans to households stood at 3.0% in February, unchanged from previous month
• Annual growth rate of adjusted loans to non-financial corporations stood at 2.9% in February, compared with 2.8% in January

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 3.0% in February 2026 from 3.2% in January, averaging 3.0% in the three months up to February. 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 4.8% in February from 5.2% in January. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 0.2% in February from -0.6% in January. The annual growth rate of marketable instruments (M3-M2) decreased to -1.3% in February from 1.3% in January.

Chart 1

Monetary aggregates

(annual growth rates)

Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 3.1 percentage points (down from 3.3 percentage points in January), short-term deposits other than overnight deposits (M2-M1) contributed 0.1 percentage points (up from -0.2 percentage points) and marketable instruments (M3-M2) contributed -0.1 percentage points (down from 0.1 percentage points).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.2% in February, unchanged from the previous month, while the annual growth rate of deposits placed by non-financial corporations increased to 3.9% in February from 3.6% in January. Finally, the annual growth rate of deposits placed by investment funds other than money market funds decreased to 6.2% in February from 8.8% in January.

Counterparts of the broad monetary aggregate M3

The annual growth rate of M3 in February 2026, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: claims on the private sector contributed 2.8 percentage points (down from 2.9 percentage points in January), net external assets contributed 2.1 percentage points (down from 2.2 percentage points), claims on general government contributed 0.0 percentage points (down from 0.4 percentage points), longer-term liabilities contributed -1.2 percentage points (down from -1.0 percentage points), and the remaining counterparts of M3 contributed -0.8 percentage points (up from -1.2 percentage points).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

(percentage points)

Claims on euro area residents

The annual growth rate of total claims on euro area residents decreased to 2.2% in February 2026 from 2.5% in the previous month. The annual growth rate of claims on general government decreased to 0.1% in February from 0.9% in January, while the annual growth rate of claims on the private sector stood at 3.0% in February, compared with 3.1% in January.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) stood at 3.3% in February, compared with 3.4% in January. Within the non-financial private sector, the annual growth rate of adjusted loans to households stood at 3.0% in February, unchanged from the previous month, while the annual growth rate of adjusted loans to non-financial corporations stood at 2.9% in February, compared with 2.8% in January.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

Notes:

• Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
• "Private sector" refers to euro area non-MFIs excluding general government.
• Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.