MONETARY STATISTICS MAY

MAY 2018

2 CONTENT Table 1: Key interest rates 4 Table 2: Financial market interest rates 4 Notes to tables 1-2 5 Monetary developments Table 3: Key monetary indicators 6 Table 4: Monetary aggregates and counterparts 7 Table 5: Sector breakdown of components of M3 8 Table 6: Loans to private sector 9 Table 7: Contributions to annual growth of M3 10 Table 8: Contributions to annual growth of loans to private sector 11 Table 9a: Balance sheets of MFIs by reporting institutions (Assets) 12 Table 9b: Balance sheets of MFIs by reporting institutions (Liabilities) 13 Notes to tables 3-9 14 Monetary financial institutions interest rates Table 10: MFI interest rates on new business 15 Table 11: MFI interest rates on outstanding amounts 16 Charts: MFI interest rates 17 Notes to tables 10-11 18 Investment funds except money market funds Table 12: Aggregated balance sheet of investment funds 19 Financial corporations engaged in lending (financial leasing, hire purchase and provision of personal or commercial finance, factoring and forfaiting) Table 13: Quarterly aggregated balance sheet of FCLs 20 Table 14a: Summary of loans provided by FCLs to residents 21 Table 14b: Breakdown of loans provided to households 21 Notes to tables 12-14 22 Glossary 23 Technical notes 27 List of Annexes 29 Annex Cost-of-borrowing Indicators The information in Tables 3-14 are based on monetary statistics of CNB harmonized with monetary statistics of European System of Central Banks. The data are not seasonally adjusted and the last period data are always preliminary. All the data quoted in this Publication are included in the ARAD time series system: http://www.cnb.cz/cnb/stat.arady_pkg.strom_sestavy?p_strid=aaag&p_sestuid=&p_lang=en (Time series database ARAD >> Money and financial statistics >> Monetary statistics >> Monetary Statistics Publication). Source: CNB, unless otherwise stated

3 LIST OF ABBREVIATIONS AND CODES Codes CNB ECB European Central Bank ESA European System of Accounts Eurozone The European Union member states that have adopted the EUR IF Investment funds excluding money market funds MMF money market funds LTIR yield of the 10-year bond M1, M2, M3 monetary aggregates MFI monetary financial institutions NFA net foreign assets NISH non-profit institutions serving households Non MFI all institutions excluding MFIs OFI other financial intermediaries FCL financial corporations engaged in lending (financial leasing, hire purchase and provision of personal or commercial finance, factoring and forfaiting) Institutional sectors and subsectors according to ESA2010 S.11 non-financial corporations S.121 central bank S.122 deposit-taking corporations, except the central bank S.123 money market funds S.124 non-mmf investment funds S.125 other financial intermediaries, except insurance corp. and pension funds S.126 financial auxiliaries S.127 captive financial institutions and money lenders S.128 insurance corporations S.129 pension funds S.13 general government S.1311 central government S.14 households S.15 non-profit institutions serving households

4 TABLE 1 KEY INTEREST RATES from 4 August 2017 onwards CNB from 3 November 2017 onwards from 2 February 2018 onwards ECB from 16 March 2016 onwards 2W repo rate 0.25 0.50 0.75 0.00 Deposit facility 0.05 0.05 0.05-0.40 Marginal lending facility 0.50 1.00 1.50 0.25 TABLE 2 FINANCIAL MARKET INTEREST RATES 2017 2018 monthly average March January February March Money market CZEONIA overnight 0.05 0.11 0.16 0.11 PRIBOR 1 month 0.20 0.66 0.82 0.82 3 months 0.28 0.77 0.90 0.90 6 months 0.35 0.86 0.99 0.99 1 year 0.44 0.98 1.11 1.12 Capital market CZ Euro area CZ Euro area CZ Euro area CZ Euro area Bond yields 2 years -0.44-0.37 0.46-0.37 0.55-0.33 0.62-0.36 5 years 0.10 0.25 0.99 0.20 1.07 0.35 1.09 0.30 10 years (Maastricht) 0.87 1.46 1.77 1.03 1.82 1.27 1.81 1.17 Source:, European Central Bank

5 Financial market interest rates in CZ (%) 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 2W repo rate 3M PRIBOR Bond yields 10 years COMMENTARY ON KEY INTEREST RATES (TABLE 1) AND FINANCIAL MARKET INTEREST RATES (TABLE 2): MARCH 2018 Key interest rates The 2W repo rate of the (CNB) increased by 0.25 percentage point to 0.75% with effect from 2 February 2018. The key interest rate of the European Central Bank (ECB) has been at zero since March 2016. The ECB s Lombard rate fell by 0.05 percentage point (to 0.25%) as of the same date as the ECB s key rate. The CNB s Lombard rate also changed in early February 2018, up by 0.50 percentage point to 1.50%. The ECB s discount rate decreased to a historical low of -0.40% in March 2016, down by 0.10 percentage point from the level of -0.30% where it had stood since December 2015. Financial market interest rates All the interest rates on the Czech interbank deposit market were almost unchanged in March. The 1M PRIBOR, 3M PRIBOR and 6M PRIBOR rates were flat at their February levels, at 0.82% (1M PRIBOR), 0.90% (3M PRIBOR) and 0.99% (6M PRIBOR). The 1Y PRIBOR recorded the largest change of 0.01 percentage point, reaching 1.12%. The capital market saw slightly larger changes in interest rates than the money market. The yield on the 2Y Czech bond rose by 0.07 percentage point to 0.62%. The yield on the 5Y bond increased by 0.02 percentage point to 1.09%. By contrast, the yield on the 10Y bond declined from 1.82% in February to 1.81% in March. The yield on the 2Y euro area bond fell by 0.03 percentage point to -0.36%. The yield on the 5Y euro area bond dropped by 0.05 percentage point. It stood at 0.30% in March. The yield on the 10Y bond decreased by 0.10 percentage point to 1.17%. The largest differential between Czech and euro area bond yields was recorded for the 2Y bond, reaching 0.98 percentage point.

6 TABLE 3 KEY MONETARY INDICATORS 2017 2018 CZK billions, unless otherwise indicated March January February March Stocks Flows 4) growth rates Annual (%) Stocks Flows 4) growth rates Annual (%) Stocks Flows 4) Annual growth rates (%) Stocks Flows 4) growth rates Annual (%) M1 3 620.5 72.7 14.3 3 772.0 3.3 8.6 3 798.3 23.6 7.7 3 798.7 0.8 5.6 M3 1) 4 085.6 96.1 11.8 4 278.3 56.7 9.5 4 334.4 53.1 9.3 4 350.0 16.0 7.1 Loans to private sector 2) 2 711.7 39.6 9.6 2 821.2 51.3 7.9 2 846.3 22.8 8.0 2 862.8 17.2 7.1 Net foreign assets 3) 2 238.0 164.1 32.5 1 930.0 9.6 11.3 2 005.7 64.0 9.5 1 995.0-3.6 1.5 1) Monetary aggregates comprise monetary liabilities of MFIs vis-à-vis non-mfi Czech residents excluding central government. M1 is the sum of currency in circulation and overnight deposits; M2 is the sum of M1, deposits with an agreed maturity of up to two years and deposits redeemable at notice of up to three months; and M3 is the sum of M2, repurchase agreements, money market fund shares/units and debt securities up to two years. 2) Including all resident sectors without general government (S.13) and MFIs sector (S.121, S.122 and S.123 according to ESA2010). 3) Net foreign assets (NFA) represent balance of financial claims and liabilities of the MFI sector vis-à-vis nonresidents. 4) Net value of flow data calculated by adjusting the difference between end-of-period levels for the effect of non-transactionsrelated factors. Annual growth rates (%) 45 35 25 15 5-5 -15 M1 NFA M3 Loans to private sector

7 TABLE 4 MONETARY AGGREGATES AND COUNTERPARTS COMPONENTS OF M3 M3 (items 1.3. 1.6 and (1) 1.11) Stocks 2017 2018 CZK billions, unless otherwise indicated March January February March Flows 1) Annual growth rates (%) Stocks Flows 1) Annual growth rates (%) Stocks Flows 1) Annual growth rates (%) Stocks Flows 1) Annual growth rates (%) 4 085.6 96.1 11.8 4 278.3 56.7 9.5 4 334.4 53.1 9.3 4 350.0 16.0 7.1 (1.1) Currency in circulation 521.8 5.2 9.7 536.9-11.5 5.2 538.4 1.5 4.2 545.6 7.2 4.6 (1.2) Overnight deposits 3 098.6 67.5 15.1 3 235.1 14.8 9.2 3 259.9 22.1 8.3 3 253.1-6.4 5.7 (1.3) M1 (items 1.1 and 1.2) 3 620.5 72.7 14.3 3 772.0 3.3 8.6 3 798.3 23.6 7.7 3 798.7 0.8 5.6 Deposits with agreed (1.4) maturity up to 2Y Deposits redeemable at (1.5) notice up to 3M Other short term (1.6) deposits (1.4 and 1.5) 180.4 0.9-11.0 183.7 24.9 6.8 200.3 16.3 13.2 210.6 10.4 18.5 216.6-0.7-17.2 207.1-0.2-6.2 205.9-1.2-5.3 205.0-0.9-5.4 397.0 0.1-14.5 390.7 24.8-0.5 406.2 15.1 3.0 415.6 9.5 5.4 (1.7) M2 (items 1.3 and 1.6) 4 017.5 72.8 10.6 4 162.7 28.1 7.7 4 204.4 38.7 7.2 4 214.3 10.3 5.6 (1.8) Repurchase agreements 2) 66.1 22.5-114.0 28.5-128.3 14.4-133.8 5.4 - Money market fund (1.9) shares/units 2) 1.9 0.7-1.6 0.0-1.6 0.0-1.9 0.3 - Debt securities issued (1.10) with maturity up to 2Y 2) 0.0 0.0-0.0 0.1-0.0 0.0-0.0 0.0 - Marketable instruments (1.11) (items 1.8, 1.9 and 1.10) 2) 68.1 23.2-115.6 28.6-130.0 14.4-135.6 5.6 - COUNTEPARTS OF M3 MFI liabilities Holdings deposits against (2) central government 402.5 81.9 71.4 323.6 13.6 12.8 375.0 51.3 17.1 386.8 11.8-3.8 Longer-term fin. deposits (3) against other residents 1 133.6 13.1 7.7 806.9 2.3-0.6 821.8 4.2-0.6 815.3 0.6-1.6 (items 3.1 to 3.4) Deposits with agreed (3.1) maturity over 2Y 235.4-0.9 1.8 230.9-0.6-2.3 228.2-2.7-3.3 227.3-0.9-3.4 Deposits redeemable at (3.2) notice over 3M 26.8-0.4-8.6 24.0-0.2-12.3 24.0-0.1-11.9 23.9 0.0-10.5 Debt securities issued (3.3) with maturity over 2Y 126.9 3.2-2.4 105.5-1.2-11.4 104.8-0.8-12.1 104.4-0.6-14.9 (3.4) Capital and reserves 744.6 11.2 12.5 446.3 4.3 3.9 464.8 7.7 4.8 459.6 2.2 3.8 MFI assets Credit to residents (4) (items 4.1 and 4.2) Credit to general (4.1) government 3 345.8 18.5 3.0 3 403.7 62.2 4.0 3 443.3 37.6 4.9 3 472.6 29.9 5.2 560.2-20.1-20.0 506.8 10.6-13.1 521.7 15.3-8.4 534.7 13.1-2.7 (4.2) Credit to private sector 2 785.7 38.6 9.4 2 896.9 51.5 7.7 2 896.9 22.3 7.7 2 937.9 16.8 6.8 (5) Net foreign assets 2 238.0 164.1 32.5 1 930.0 9.6 11.3 2 005.7 64.0 9.5 1 995.0-3.6 1.5 Other counterparts of M3 (6) (residual) (=M3+items 2,3 - items 4,5) 2) 37.8 8.4-75.1 0.8-82.2 7.0-84.4 2.2-1) Net value of flow data calculated by adjusting the difference between end-of-period levels for the effect of non-transactions-related factors. 2) Given the significant variability of the underlying values, annual growth rates are not calculated.

8 TABLE 5 SECTOR BREAKDOWN OF COMPONENTS OF M3 CZK billions 2017 2018 March January February March Stocks Flows 1) Stocks Flows 1) Stocks Flows 1) Stocks Flows 1) (1) Overnight deposits 3 098.6 67.5 3 235.1 14.8 3 259.9 22.1 3 253.1-6.4 (1.1) Other general government 207.7 15.2 224.1 18.2 229.0 4.9 242.0 13.0 (1.2) Other financial intermediaries 2) 110.0 8.9 95.2 2.0 101.5 6.2 94.0-7.5 (1.3) Insurance corporations and pension funds 34.9-3.0 26.2-7.8 22.1-4.2 20.0-2.0 (1.4) Non-financial corporations 923.6 31.1 935.7-12.3 931.4-6.1 912.3-18.9 (1.5) Households 3) 1 822.4 15.3 1 953.8 14.7 1 975.9 21.3 1 984.8 9.1 (2) M2 - M1 (other short- term deposits) 397.0 0.1 390.7 24.8 406.2 15.1 415.6 9.5 (2.1) Other general government 18.2-0.7 16.2 2.3 18.2 2.0 19.6 1.4 (2.2) Other financial intermediaries 2) 46.3 1.9 41.5 16.0 42.8 1.3 49.1 6.3 (2.3) Insurance corporations and pension funds 25.4 3.3 28.5-2.1 27.5-1.1 30.2 2.7 (2.4) Non-financial corporations 49.1 0.3 55.7 6.5 70.4 14.6 68.2-2.2 (2.5) Households 3) 258.0-4.7 248.9 2.1 247.2-1.8 248.5 1.3 (3) Repurchase agreements (a part of M3 - M2) 66.1 22.5 114.0 28.5 128.3 14.4 133.8 5.4 1) Net value of flow data calculated by adjusting the difference between end-of-period levels for the effect of non-transactionsrelated factors. 2) Including other financial intermediaries (without insurance corporations and pension funds) (S.124 and S.125 according to ESA2010), financial auxilliaries (S.126 according to ESA2010) and captive financial insitutions (S.127 according to ESA2010). 3) Including households (S.14) and non-profit inctitutions serving households (S.15) according to ESA2010. Overnight deposits and other short-term deposits (CZK billions) and their annual growth rates (%) 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 20 15 10 5 0-5 -10-15 -20-25 Other short-term deposits Overnight deposits Annual growth rate of overnight deposits (right-hand scale) Annual growth rate of other short-term desposits (right-hand scale)

9 TABLE 6 LOANS TO PRIVATE SECTOR CZK billions 2017 2018 March January February March Stocks Flows 1) Stocks Flows 1) Stocks Flows 1) Stocks Flows 1) (1) Loans to non-financial corporations 1 023.0 15.5 1 033.5 1.1 1 047.7 12.2 1 046.0-1.5 (1.1) up to 1 year 258.1 11.1 258.4 1.1 256.6-2.3 253.0-3.4 (1.2) over 1 year and up to 5 years 198.6 4.3 199.7 0.5 212.5 12.3 210.9-1.6 (1.3) over 5 years 566.3 0.1 575.4-0.5 578.6 2.2 582.1 3.5 (2) Loans to households 2) 1 446.3 13.1 1 540.8 6.0 1 546.7 6.4 1 556.0 9.8 (2.1) Consumer credit 221.9 2.8 230.3-0.2 230.5 0.6 232.1 1.9 (2.2) Lending for house purchase 1 077.8 8.8 1 157.9 5.9 1 163.4 5.6 1 170.7 7.4 (2.3) Other lending 146.6 1.5 152.5 0.3 152.8 0.2 153.2 0.5 (3) Loans to other financial intermediaries 3) 224.2 5.6 226.6 26.5 225.6-1.5 233.8 8.2 (4) Loans to insurance corporations and pension funds 18.2 5.4 20.3 17.7 26.4 5.7 27.0 0.7 1) Net value of flow data calculated by adjusting the difference between end-of-period levels for the effect of non-transactionsrelated factors. 2) Including households (S.14) and non-profit inctitutions serving households (S.15) according to ESA2010. 3) Including other financial intermediaries (without insurance corporations and pension funds) (S.124 and S.125 according to ESA2010), financial auxilliaries (S.126 according to ESA2010) and captive financial insitutions (S.127 according to ESA2010). Loans to private sector (CZK billions) and annual growth of loans to non-financial institutions and households (%) 3 500 15 3 000 2 500 2 000 10 5 1 500 1 000 500 0 0-5 -10 Loans to insurance corporations and pension funds Loans to other financial intermediaries Loans to households Loans to non-financial corporations Loans to private sector Annual growth of loans to households (right-hand scale) Annual growth of loans to non-financial corporations (right-hand scale)

10 TABLE 7 - CONTRIBUTIONS TO ANNUAL GROWTH 1) OF M3 2017 2018 March January February March % points % points % points % points M1 12.4 7.7 6.9 4.9 of which: Currency 1.3 0.7 0.5 0.6 Overnight deposits 11.1 7.0 6.3 4.4 M2 - M1 (= other short-term deposits) -1.8 0.0 0.3 0.5 M3 - M2 (= short-term marketable instruments) 1.2 1.9 2.1 1.7 M3 11.8 9.5 9.3 7.1 1) Contributions to growth are the growth rates of M3 weighted by the share in total M3. Contributions to annual growth of M3 (%) 20 15 10 5 0-5 -10 Currency in circulation Overnight deposits M2-M1 (other short-term deposits) M3-M2 (short-term marketable instruments) M3

11 TABLE 8 - CONTRIBUTIONS TO ANNUAL GROWTH 1) OF LOANS TO PRIVATE SECTOR 2017 2018 March January February March % points % points % points % points Non-financial corporations 2.0 2.2 2.4 1.7 Households 2) 4.7 4.5 4.5 4.3 Other financial intermediaries 3) 2.2 0.8 0.5 0.6 Insurance corporations and pension funds 0.7 0.4 0.6 0.4 Loans to private sector 4) 9.6 7.9 8.0 7.1 1) Contributions to growth are the growth rates of lending weighted by the share in total lending to private sector. 2) Including households (S.14) and non-profit inctitutions serving households (S.15) according to ESA2010. 3) Including other financial intermediaries (without insurance corporations and pension funds) (S.124 and S.125 according to ESA2010), financial auxilliaries (S.126 according to ESA2010) and captive financial insitutions (S.127 according to ESA2010). 4) Including all sectors without general government (S.13) and MFIs sector (S.121, S.122 and S. 123) according to ESA2010. Contributions to annual growth of loans to private sector (%) 12 10 8 6 4 2 0-2 -4-6 Non-financial corporations Households Other financial intermediaries Insurance corporations and pension funds Loans to private sector

12 TABLE 9a - BALANCE SHEETS OF MONETARY FINANCIAL INSTITUTIONS BY REPORTING INSTITUTIONS (ASSETS): MARCH 2018 Monetary financial institutions CNB Other monetary financial institutions CZK billions Consolidated balance sheet of MFIs (1) ASSETS TOTAL 3 113.4 7 401.9 7 552.5 (1.1) Loans to residents 2.5 5 473.1 2 907.1 MFI 0.0 2 568.4 - General government 0.0 44.4 44.4 Other residents 2.5 2 860.3 2 862.8 (1.2) Holdings of securities other than shares issued by residents 0.0 826.7 515.4 MFI 0.0 311.3 - General government 0.0 490.4 490.4 Other residents 0.0 25.1 25.1 (1.3) Money market fund shares/units 0.0 0.0 - (1.4) Holdings of shares/other equity issued by residents 0.0 93.9 50.0 MFI 0.0 43.8 - Other residents 0.0 50.0 50.0 (1.5) External assets 3 096.8 655.8 3 752.6 (1.6) Fixed assets 10.7 130.7 141.4 (1.7) Remaining assets 3.4 221.8 185.9 Consolidated balance sheet of MFIs assets 4% 50% 39% Loans to residents Holdings of debt securities issued by residents External assets Remaining assets 7%

13 TABLE 9b - BALANCE SHEETS OF MONETARY FINANCIAL INSTITUTIONS BY REPORTING INSTITUTIONS (LIABILITIES): MARCH 2018 Monetary financial institutions CNB Other monetary financial institutions CZK billions Consolidated balance sheet of MFIs (2) LIABILITIES TOTAL 3 113.4 7 401.9 7 552.5 (2.1) Currency in circulation 584.8-545.6 (2.2) Deposits of residents 2 691.9 4 302.1 4 440.6 MFI 2 399.3 154.2 - Central government 291.0 95.8 386.8 Other general government/other residents 1.6 4 052.2 4 053.8 (2.3) Money market fund shares/units - 1.9 1.9 (2.4) Debt securities issued 0.0 415.7 104.4 (2.5) Capital and reserves -225.2 728.6 459.6 (2.6) External liabilities 54.9 1 702.6 1 757.6 (2.7) Remaining liabilities 7.0 250.9 257.9 (2.8) Excess of inter MFI liabilities - - -15.0 Consolidated balance sheet of MFIs - liabilities 23% 7% Currency in circulation Deposits of residents Money market fund shares/units 10% 1% 0% 59% Debt securities issued Capital, reserves and remaining liabilities External liabilities

14 COMMENTARY ON MONETARY DEVELOPMENTS STATISTICS 1) (TABLES 3-9): MARCH 2018 The evolution of the annual rate of growth of M3 was characterised by fluctuations around 9.5% in the first eight months of 2016. The last four months of 2016 saw a decline from 8.7% in September to 6.7% in December. An upward trend continued from January 2017 to August 2017, when the annual growth rate reached 13.1%. The annual growth rate was gradually decreasing in the following three months, standing at 7.1% in March 2018 (9.3% in February 2018). As a result of financial transactions, M3 rose by CZK 16.0 billion month on month (and by CZK 290.0 billion year on year), reaching CZK 4,350.0 billion. Main components of M3 The decrease in the annual growth rate of M3 from 9.3% in February to 7.1% in March was due to a lower contribution of overnight deposits (down from 6.3 percentage points in February to 4.4 percentage points). The 1.9 percentage point decline in overnight deposits was affected by the contribution of M1, which dropped from 6.9 percentage points in February to 4.9 percentage points in March. (Table 7) The decrease in the annual growth rate of overnight deposits from 8.3% in February to 5.7% in March was reflected in a decline in the annual growth rate of M1 to 5.6%. Overnight deposits decreased by 0.2% (or CZK 6.4 billion) month on month, due to financial transactions. Within overnight deposits, the largest increase was recorded for deposits of other government (up by 5.7%, or CZK 13.0 billion). Deposits of households also increased (by 0.5%, or CZK 9.1 billion). By contrast, decreases were recorded for deposits of insurance corporations and pension funds (down by 9.3%, or CZK 2.0 billion), other financial intermediaries (down by 7.4%, or CZK 7.5 billion) and non-financial corporations (down by 2.0%, or CZK 18.9 billion). Currency in circulation increased by 1.3% month on month, amounting to CZK 545.6 billion (CZK 538.4 billion in February). Other short-term deposits (excluding overnight deposits) rose by 2.4% (CZK 9.5 billion) month on month, due to financial transactions. The annual rate of growth of these deposits rose to 5.4% (3.0% in February). The annual rate of growth of deposits with agreed maturity of up to two years increased by 5.3 percentage point compared to the previous month, reaching 18.5%. The annual growth rate of deposits redeemable at notice of up to 3 months decreased to -5.4% (-5.3% in February). Within other short-term deposits, the largest increase was recorded for deposits of other financial intermediaries (up by 14.6%, or CZK 6.3 billion). Increases were also recorded for deposits of insurance corporations and pension funds (up by 9.9%, or CZK 2.7 billion), other government (up by 7.8%, or CZK 1.4 billion) and households (up by 0.5%, or CZK 1.3 billion). By contrast, deposits of non-financial corporations decreased by 3.1%, or CZK 2.2 billion. Marketable instruments, which consist of repos, money market fund shares/units and debt securities with maturities of up to two years, increased by CZK 5.6 billion month on month due to financial transactions, to CZK 135.6 billion. Main counterparts of M3 The annual rate of growth of loans to the private sector, which are the most important counterpart of M3, stood at 7.1% in March 2018 (8% in February). The annual growth rate of loans to non-financial corporations, a major component of this indicator, was irregularly volatile from the start of 2016. It stood at 4.5% in March 2018 (6.2% in February). The annual growth rate of loans to households, another major component, grew gradually from January 2015 to June 2017 (8.9%). The annual growth rate of loans to households started to decrease slightly in July 2017; it was flat at 8.3% from October 2017 to February 2018 and dropped to 8% in March. The annual growth rate of loans provided to general government and purchased securities was -2.7% in March (-8.4% in February). The annual growth rate of net external assets declined to 1.5% at the end of March (from 9.5% in February). The annual rate of growth of longer-term financial liabilities decreased from -0.6% in February to -1.6% in March. The annual growth rate of deposits of central government declined to -3.8% in March (from 17.1% in February). 1) All increases and decreases referred to in this commentary relate only to financial transactions adjusted for non transaction effects.

15 TABLE 10 - INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS - NEW BUSINESS 1) (1) Deposits from households 2) Interest rate (% p.a.) 2017 2018 March January February March Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) (1.1) Overnight 3) 0.10 1 760.3 0.11 1 888.7 0.10 1 909.8 0.11 1 917.5 of which: current accounts 0.05 1 118.0 0.05 1 211.1 0.04 1 227.9 0.05 1 234.3 (1.2) With agreed maturity 0.90 4.1 0.77 6.2 0.87 8.5 0.78 6.7 of which: Up to 2 years 0.83 3.4 0.66 5.4 0.77 7.4 0.68 5.9 (1.3) Redeemable at notice 3), 4) 1.08 237.3 1.09 226.5 1.09 225.1 1.09 224.1 (1.3.1) Up to 3 months notice 1.21 210.7 1.20 202.7 1.21 201.3 1.21 200.4 (1.3.2) Over 3 months notice 0.10 26.6 0.14 23.9 0.14 23.8 0.15 23.7 (2) Deposits from non-financial corporat. (2.1) Overnight 3) 0.03 767.0 0.03 734.0 0.03 730.8 0.03 717.2 (2.2) With agreed maturity 0.08 9.6 0.27 28.9 0.48 43.3 0.43 44.1 of which: Up to 1 year 0.04 9.5 0.27 28.9 0.48 43.3 0.43 44.0 (3) Loans to households 2) (3.1) Consumer. house pur. and other loans 4.04 47.5 3.96 40.9 4.07 37.9 4.00 44.2 (3.1.1) Consumer credit 9.42 11.1 8.85 9.0 8.74 8.9 8.49 9.9 (3.1.2) Lending for house purchase 2.28 31.9 2.44 28.5 2.49 25.5 2.57 30.5 of which: Mortgage lending 5) 2.06 27.0 2.30 24.6 2.32 21.8 2.41 26.4 Saving for building purposes 3.64 3.1 3.30 2.7 3.37 2.7 3.48 3.1 (3.1.3) Other lending 3.25 4.5 3.59 3.3 3.65 3.5 3.75 3.7 (3.2) Overdraft 6) and revolving loans 3) 12.91 25.3 12.55 26.4 12.50 26.0 12.46 26.5 (3.3) Credit cards 3) 20.28 24.1 19.46 21.2 19.55 20.7 19.03 20.4 (4) Loans to non-financial corporations (4.1) Total loans (all size categories) 1.84 45.9 2.24 30.4 2.44 24.9 2.35 39.1 (4.1.1) Up to CZK 7.5 million 3.21 3.2 3.44 2.8 3.58 2.6 3.63 3.1 of which: Up to 3 months rate fixation 7) 3.01 1.7 3.55 1.4 3.52 1.5 3.61 1.6 (4.1.2) CZK 7.5-30 million 1.93 5.5 2.23 4.6 2.53 4.1 2.49 4.7 of which: Up to 3 months rate fixation 7) 1.78 3.2 2.06 3.1 2.40 2.5 2.35 2.8 (4.1.3) Over to CZK 30 million 1.71 37.2 2.10 23.0 2.25 18.1 2.20 31.2 of which: Up to 3 months rate fixation 7) 1.92 19.4 2.06 21.2 2.21 16.3 2.19 20.5 (4.2) Overdraft 6), revolving and credit cards 3) 2.32 191.0 2.58 204.1 2.72 204.9 2.75 208.0 (5) APRC 8) on loans to households 2) 4.43 43.0 4.25 37.5 4.38 34.4 4.27 40.5 (5.1) Consumer credit 9.97 11.1 9.27 9.0 9.10 8.9 8.80 9.9 (5.2) Lending for house purchase 2.49 31.9 2.66 28.5 2.73 25.5 2.73 25.5 1) The interest rates applied by MFIs to CZK-denominated deposits and loans vis-à-vis households and non-financial corporations resident in the Czech Republic. New business refers to any new agreement between the customer and the MFI within given perio d. 2) Including households (S.14) and non-profit institutions serving households (S.15) according to the classification ESA2010. 3) For this instrument category the new business are equal to the outstanding amounts (end-of-period stocks). 4) Households deposits redeemable at notice include similar deposits of non-financial corporations of which volumes are negligible in this category. 5) Since 2009, the amendment to Act No. 190/2004 Coll., on Bonds, as amended, has been fully applied, under which a mortgage loan is a loan whose redemption, including appurtenances (i.e. interest etc.), is secured by lien (right of pledge) over real estate (property), including property under construction, where the claim arising from the loan does not exceed twice the pledge value of the mortgaged property (Article 28(3)). 6) Debit balances on current accounts. The total amount owed by the borrower is included, irrespective of whether is within or beyond any limit agreed beforehand. 7) The initial period of fixations is a predetermined period of time at the start of the contract during which the value of the interest rate cannot change. Period up to 3 months includes floating rates. 8) Annual percentage rate of charge (APRC) covers total costs of the credit to the client including charges etc.

16 TABLE 11 - INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS - OUTSTANDING AMOUNTS 1) Interes t rate (% p.a.) 2017 2018 March January February March Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) Interest rate (% p.a.) Volume (CZK billions) (1) Deposits from households 2)3) 0.37 2 245.0 0.33 2 359.8 0.32 2 377.3 0.33 2 384.9 (1.1) With agreed maturity 1.53 256.7 1.35 251.9 1.33 249.9 1.31 251.7 (1.1.1) Up to 2 years 0.87 40.6 0.59 39.5 0.55 40.1 0.58 42.4 (1.1.2) Over 2 years 1.66 216.1 1.50 212.4 1.47 209.8 1.46 209.3 (2) Deposits from non-financial corp. 3) 0.05 816.3 0.05 794.4 0.07 808.6 0.07 791.4 (2.2) With agreed maturity 0.41 37.3 0.32 48.7 0.39 61.1 0.35 57.0 (2.2.1) Up to 2 years 0.15 33.2 0.20 44.8 0.34 57.7 0.29 54.1 (2.2.2) Over 2 years 2.52 4.0 1.65 3.9 1.28 3.4 1.45 2.9 (3) Loans to households 4.21 1 442.7 3.86 1 537.4 3.83 1 543.5 3.81 1 552.7 (3.1) Lending for house purchase 2.80 1 076.9 2.58 1 157.3 2.57 1 162.8 2.56 1 170.0 of which: Mortgage lending 4) 2.59 962.7 2.37 1 041.0 2.36 1 046.2 2.35 1 053.0 Saving for building purposes 5.23 80.2 5.12 81.8 5.11 81.9 5.10 82.1 (3.2) Consumer credit and other lending 5) 8.52 365.9 7.86 380.1 7.80 380.8 7.74 382.7 (4) Loans to non-financial corporation 2.58 710.5 2.77 735.8 2.85 736.8 2.88 741.6 (4.1) Up to 1 year 2.28 184.3 2.57 193.4 2.72 183.9 2.76 184.9 (4.2) Over 1 and up to 5 years 2.72 121.6 3.01 126.0 3.04 135.6 3.07 134.4 (4.3) Over 5 years 2.66 404.6 2.80 416.3 2.84 417.3 2.86 422.2 1) The interest rates that are applied by MFIs to CZK-denominated deposits and loans vis-à-vis households and non-financial corporations resident in the Czech Republic. Interest rates on outstanding amounts refer to the stock of all deposits and all loans at a specific moment. 2) Including households (S.14) and non-profit institutions serving households (S.15) according to the classification ESA2010. 3) Including overnight deposits and deposits redeemable at notice presented in Table 10. For this instrument category new business and outstanding amounts coincide. 4) Since 2009, the amendment to Act No. 190/2004 Coll. on Bonds, as amended, has been fully applied, under which a mortgage loan is a loan whose redemption, including appurtenances (i.e. interest etc.), is secured by lien (right of pledge) over real estate (property), including property under construction, where the claim arising from the loan does not exceed twice the pledge value of the mortgaged property (Article 28(3)). 5) Consumer credit and other lending include bank overdrafts, revolving loans and credit cards presented in Table 10.

17 INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS ON NEW BUSINESS New business, deposits New business, loans 2,5 16 2,0 14 1,5 1,0 0,5 0,0 12 10 8 6 4-0,5 2-1,0 0 Households - overnight Households - deposits with agreed maturity Non-financial corp. - overnight Non-financial corp. - deposits with agreed maturity Deposits redeemable at notice Households - consumer credit Households - lending for house purchase Households - overdraft and revolving Non-fin. corp. - loans over CZK 30 mil. Non-financial corp. - overdraft, revolving and credit cards INTEREST RATES OF MONETARY FINANCIAL INSTITUTIONS ON OUTSTANDING AMOUNTS Outstanding amounts, deposits Outstanding amounts, loans 2,5 12,0 2,0 10,0 1,5 1,0 8,0 0,5 6,0 0,0-0,5 4,0-1,0 2,0 Households with agreed maturity up to 2 years Households with agreed maturity over to 2 years Non-financial corp. with agreed maturity up to 2 years Households - consumer credit Non-financial corp. up to 1 year Households - lend. for house pur. Non-financial corp. - over 5 years

18 COMMENTARY ON MFI INTEREST RATES (TABLES 10 AND 11) MARCH 2018 Interest rates on new business In March, interest rates on new deposits recorded the largest change for household deposits with agreed maturity. The interest rate on overnight deposits of households edged up to 0.11%. The rate on current account deposits rebounded from the lowest level since the start of the measurement, rising to 0.05%. The rate on deposits with agreed maturity decreased by 0.09 percentage point to 0.78% and the rate on deposits redeemable at notice was unchanged from February at 1.09% (this rate is the only one to include, in addition to the household sector, also similar deposits of non-financial corporations, whose volumes are negligible in this category). The interest rate on overnight deposits of non-financial corporations has been unchanged at an all-time low of 0.03% since February 2017. The rate on deposits with agreed maturity of up to one year (which as a rule account for 100% of all deposits with agreed maturity in this sector) saw a decrease of 0.05 percentage point, to 0.48%. Within interest rates on new loans to households, the biggest change was recorded for credit cards in March. Interest rates on loans to non-financial corporations saw the largest change for loans of over CZK 7.5 million and up to CZK 30 million. The overall interest rate on consumer credit, loans for house purchase and other loans declined by 0.07 percentage point to 4.00%. Consumer credit was remunerated at 8.49%, down by 0.25 percentage point. This indicator decreased by 0.93 percentage point year on year. The interest rate on loans for house purchase rose slightly to 2.57%. Mortgage loans were remunerated at 2.41%, i.e. higher than in February, rising for the seventh consecutive month. Building society loans were remunerated at 3.48%, up by 0.11 percentage point. The rate on other loans increased by 0.10 percentage point to 3.75%. The rate on credit cards stood at 19.03%, down by 0.52 percentage point from February. The interest rate on new loans to non-financial corporations (excluding overdrafts, revolving loans and credit cards) fell by 0.09 percentage point to 2.35%. The rate on loans of up to CZK 7.5 million rose by 0.05 percentage point to 3.63%. The interest rate on loans of over CZK 7.5 million and up to CZK 30 million was down by 0.04 percentage point to 2.49%. The interest rate on loans of over CZK 30 million decreased by 0.05 percentage point to 2.20%. Interest rates on outstanding amounts The average interest rates on outstanding amounts of deposits of households changed only slightly in March. Changes were more pronounced for non-financial corporations. Total deposits of households were remunerated at 0.33%, i.e. higher than in February. The interest rate on overnight deposits rose to 0.11%. The interest rate on deposits redeemable at notice was flat at 1.09% and the rate on deposits with agreed maturity declined slightly to 1.31%. The interest rate on total deposits of non-financial corporations was 0.07%, unchanged from February. The interest rate on overnight deposits was flat at an all-time low of 0.03%. The interest rate on deposits with agreed maturity fell to 0.39%. Interest rates on outstanding amounts of loans to households changed only slightly in March. The changes in interest rates on outstanding amounts of loans to non-financial corporations were also just a few basis points. The overall interest rate on loans to households fell by 0.02 percentage point to 3.81%. The interest rate on loans for house purchase declined marginally to 2.56%. Consumer credit and other loans were remunerated at 7.74%, down by 0.06 percentage point from February. The average interest rate on outstanding amounts of loans to non-financial corporations increased somewhat to 2.88%. The rate on loans with maturity of up to one year increased to 2.76%. The interest rate on loans with maturity of over one year and up to five years rose to 3.07%. The rate on loans with maturity of over five years also picked up, reaching 2.86%. This was its eighth increase since January 2017.

12-08 3-09 6-09 9-09 12-09 3-10 6-10 9-10 12-10 3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13 3-14 6-14 9-14 12-14 3-15 6-15 9-15 12-15 3-16 6-16 9-16 12-16 3-17 6-17 9-17 12-17 MONETARY STATISTICS 19 TABLE 12 AGGREGATED BALANCE SHEET OF INVESTMENT FUNDS 1) Outstanding amounts 2017 2018 February December January February Transactions Outstanding amounts Transactions Outstanding amounts Transactions Outstanding amounts CZK billions Transactions Total Assets 415.8 9.1 479.4 4.9 486.1 4.5 488.9 3.6 (1.1) Deposits 60.0 9.1 57.9-5.9 58.6 0.7 57.5-1.1 (1.2) Securities other than shares 107.8 1.4 112.4 3.8 110.3-0.7 107.1-3.6 Residents 57.6 1.7 58.0 2.3 56.1-1.5 53.7-2.4 Non-residents 50.2-0.3 54.4 1.5 54.2 0.8 53.4-1.1 (1.3) Shares and other equity 78.7 0.5 99.4 2.2 101.7 0.8 105.3 1.7 Residents 32.0 0.2 37.5 0.4 37.6-0.3 37.3-0.1 Non-residents 46.7 0.3 61.9 1.8 64.1 1.1 68.0 1.8 (1.4) Investment fund shares (including MMFs) 85.6-1.7 109.0 1.9 108.8-0.1 109.0 1.3 Residents 17.8 0.7 21.0 0.2 20.6-0.4 20.6 0.0 Non-residents 67.8-2.4 88.0 1.6 88.2 0.3 88.4 1.2 (1.5) Other assets 83.7-0.3 100.8 3.0 106.8 3.9 110.0 5.3 Total Liabilities 415.8 9.1 479.4 4.9 486.1 4.5 488.9 3.6 (2.1) Loans accepted 21.0 5.6 25.6 1.3 26.4 0.9 25.3-1.1 (2.2) Investment fund shares 369.6 4.1 433.0 7.8 439.3 3.9 442.2 4.4 (2.3) Other liabilities 25.2-0.7 20.8-4.3 20.4-0.2 21.4 0.3 1) Investment Funds (IFs) represent Mutual and Investment Funds other than Money Market Funds which are residents in the Czech Republic. Funds of funds and funds of qualified investors are classified under the category of assets or funds in which they primarily invest. Data are published by the 15th calendar day of the second month following the reference period. Balance sheet total breakdown by asset items (CZK billions) 600 500 400 300 200 100 0 Deposits Securities other than shares IF shares/units (incl. MMFs) Shares and other equity Other assets Total assets

12-05 6-06 12-06 6-07 12-07 6-08 12-08 6-09 12-09 6-10 12-10 6-11 12-11 6-12 12-12 6-13 12-13 6-14 12-14 6-15 12-15 6-16 12-16 6-17 12-17 MONETARY STATISTICS 20 TABLE 13 AGGREGATED BALANCE SHEET OF FINANCIAL CORPORATIONS ENGAGED IN LENDING 1) 2016 2017 CZK billions, end of period December March June September December Total Assets 383.4 384.7 396.7 398.4 408.3 (1.1) Deposits 8.0 6.6 7.4 7.0 6.9 (1.2) Loans provided 284.0 286.5 295.6 296.4 303.5 Residents 272.6 275.9 285.2 286.1 292.6 Non-residents 11.4 10.6 10.3 10.4 11.0 (1.3) Securities other than shares 0.8 1.1 1.1 0.9 0.8 (1.4) Shares and equity 6.3 6.1 6.1 6.2 5.9 Mutual fund shares/units (including MMFs) 0.0 0.0 0.0 0.0 0.0 Other shares and equity 6.3 6.1 6.1 6.2 5.9 (1.5) Other assets 84.3 84.5 86.5 87.9 91.2 Total Liabilities 383.4 384.7 396.7 398.4 408.3 (2.1) Loans taken 232.5 231.7 243.0 244.1 246.9 Residents 176.5 173.7 183.1 183.4 184.2 Non-residents 56.0 58.0 59.9 60.6 62.8 (2.2) Securities other than shares issued 13.2 13.8 11.7 9.2 15.2 (2.3) Own funds 98.3 99.5 100.5 102.6 104.5 (2.4) Other liabilities 39.4 39.8 41.6 42.5 41.7 1) Financial corporations engaged in lending - corporations classified within sector other financial intermediaries which are predominantly engaged in granting credit or loans or entering into agreements of similar nature, for example financial leasing, factoring, consumer credit, hire purchase, etc., (see Decree No. 314/2013 Coll.). Data are published by the last working day of the second month following the reference period. Balance sheet total breakdown by assets items (CZK billions) 500 450 400 350 300 250 200 150 100 50 0 Deposits Short-term Loans Long-term Loans Securities Other assets Total assets

21 TABLE 14a SUMMARY OF LOANS PROVIDED BY FINANCIAL CORPORATIONS ENGAGED IN ENDING 1) TO RESIDENTS 2016 2017 CZK billions, end of period December March June September December (1) Non-financial corporations 209.2 215.4 223.8 223.9 229.6 Up to 1 year 54.4 55.1 58.3 57.3 58.6 Over 1 year up to 5 years 122.1 126.2 130.3 131.3 134.9 Over 5 years 32.7 34.1 35.2 35.3 36.1 (2) Financial corporations 0.5 0.6 1.0 1.1 1.8 Up to 1 year 0.0 0.0 0.0 0.1 0.0 Over 1 year up to 5 years 0.5 0.6 0.9 1.1 1.4 Over 5 years 0.0 0.0 0.0 0.0 0.4 (3) Government 0.1 0.1 0.1 0.1 0.1 Up to 1 year 0.0 0.0 0.0 0.0 0.0 Over 1 year up to 5 years 0.1 0.1 0.1 0.1 0.1 Over 5 years 0.0 0.0 0.0 0.0 0.0 (4) Households 62.7 59.7 60.3 60.9 61.0 Up to 1 year 20.4 19.4 19.6 19.2 18.9 Over 1 year up to 5 years 35.0 32.7 31.9 32.4 33.2 Over 5 years 7.3 7.6 8.9 9.3 8.9 (5) NPISHs 0.0 0.0 0.0 0.0 0.0 Up to 1 year 0.0 0.0 0.0 0.0 0.0 Over 1 year up to 5 years 0.0 0.0 0.0 0.0 0.0 Over 5 years 0.0 0.0 0.0 0.0 0.0 1) Financial corporations engaged in lending - corporations classified within sector other financial intermediaries which are predominantly engaged in granting credit or loans or entering into agreements of similar nature, for example financial leasing, factoring, consumer credit, hire purchase, etc., (see Decree No, 314/2013 Coll.). Data are published by the last working day of the second month following the reference period. TABLE 14b BREAKDOWN OF LOANS PROVIDED BY FINANCIAL CORPORATIONS ENGAGED IN LENDING 1) TO HOUSEHOLDS 2016 2017 CZK billions, end of period December March June September December (1) Total 62.7 59.7 60.3 60.9 61.0 (1.1) Consumer credit 53.7 50.6 51.0 51.7 52.3 Up to 1 year 19.6 18.5 18.4 18.1 18.0 Over 1 year up to 5 years 28.5 26.4 26.4 26.9 27.3 Over 5 years 5.7 5.7 6.2 6.8 7.0 (1.2) Lending for house purchase 0.0 0.4 0.4 0.4 1.0 Up to 1 year 0.0 0.0 0.0 0.0 0.0 Over 1 year up to 5 years 0.0 0.0 0.0 0.0 0.0 Over 5 years 0.0 0.4 0.3 0.3 1.0 (1.3) Other loans 9.0 8.7 8.9 8.8 7.6 Up to 1 year 0.9 0.9 1.1 1.1 0.9 Over 1 year up to 5 years 6.5 6.3 5.5 5.4 5.8 Over 5 years 1.6 1.6 2.3 2.2 0.9 1) Financial corporations engaged in lending - corporations classified within sector other financial intermediaries which are predominantly engaged in granting credit or loans or entering into agreements of similar nature, for example financial leasing, factoring, consumer credit, hire purchase, etc., (see Decree No. 314/2013 Coll.). Data are published by the last working day of the second month following the reference period.

22 COMMENTARY ON THE AGGREGATED BALANCE SHEET OF INVESTMENT FUNDS (TABLE 12): FEBRUARY 2018 Net assets value: The net assets value of investment funds was CZK 442.2 billion at the end of February. This means an increase of CZK 2.9 billion compared to January (monthly transactions accounted for CZK +4.4 billion). Compared to the same period a year earlier, the net assets value of investment funds rose by 19.6%. The biggest month-on-month change in the net assets value was recorded for other funds, up by CZK 2.8 billion to CZK 42.9 billion. Investment in bonds: The value of bond holdings was CZK 107.1 billion at the end of February. Compared to the previous month, the total volume of bonds fell by CZK 3.2 billion (monthly transactions accounted for CZK -3.6 billion). The proportion of debt securities in the funds' net assets value declined to 24.2% compared to the previous month. Investment in equity securities: The volume of equity securities in the funds portfolio increased in the month under review. As of the end of the month, the value of holdings of equity securities amounted to CZK 214.3 billion, of which CZK 109.0 billion was investment in the shares and units of investment funds (including money market funds) and CZK 105.3 billion was investment in shares and other equity. The value of equity securities grew by CZK 3.8 billion compared to January (monthly transactions accounted for CZK +2.9 billion). The proportion of equity securities in the funds' net assets value increased to 48.5% compared to the previous month. Other investment: The value of funds invested in other assets rose in the period under review. The total volume of other investment was CZK 159.3 billion in February, of which CZK 49.0 billion was fixed investment and CZK 57.5 billion investment in deposits. The proportion of other investment in the funds' net assets value increased to 36.0% compared to the previous month. Reporting population: At the end of February 2018, a total of 415 resident investment funds were active in the Czech Republic, of which 53 were equity funds, 57 bond funds, 79 mixed funds, 91 real estate funds, 133 other funds and two funds without an investment policy. Six new investment funds were established during the period under review and one investment fund ceased to exist. COMMENTARY ON THE AGGREGATED BALANCE SHEET OF FINANCIAL CORPORATIONS ENGAGED IN LENDING (TABLES 13 AND 14): DECEMBER 2017 Financial corporations engaged in lending had total assets of CZK 408.3 billion as of 31 December 2017, up by CZK 9.9 billion in quarter-on-quarter terms. Compared to 2016 Q4, total assets increased by CZK 24.9 billion (or 6.5%) year on year. The largest asset item was loans provided, totalling CZK 303.5 billion, of which CZK 292.6 billion was provided to residents. Compared to the previous quarter, total loans provided rose by CZK 7.1 billion in 2017 Q4. Loans also increased in year-on-year terms, by 6.9% (CZK 19.5 billion). The largest part of loans provided to residents consisted of loans to non-financial corporations amounting to CZK 229.6 billion, i.e. 78.5% of loans to residents. Loans provided to non-financial corporations were up by CZK 5.7 billion compared to the previous quarter. In year-on-year terms, they rose by CZK 20.4 billion. The second largest category of loans to residents consisted of loans to households, totalling CZK 61.0 billion. They were up by CZK 0.1 billion compared to the previous quarter. These loans accounted for 20.8% of loans provided to residents.

23 GLOSSARY Harmonisation of statistics: the Treaty establishing the European Community tasked the European Central Bank (ECB) with ensuring harmonised statistics according to Article 5 of the Statute of the European System of Central Banks. The national central banks of EC Member States therefore collect statistical information according to a uniform definition, from which the ECB then compiles aggregate data for euro area monetary policy. Although Council Regulation No 2533/98, which specifies the requirements for statistical data collection, only concerns euro area countries, the ECB also receives full data sets from the non-participating countries (e.g. the Czech Republic) in order to monitor their economic and financial development. Monetary statistics: financial macrostatistics of constituent sub-sectors of the sector S.12 based exclusively on the host country principle. According to this principle, a resident reporting unit is an institution resident in a given economic territory. The reporting population includes 1) institutions incorporated and located in the territory, including subsidiaries of parent companies located outside that territory, and 2) branches of institutions that have their head office outside that territory. APRC: annual percentage rate of charge, i.e. the rate including interest expenses and all related costs of the credit to the client (fees etc.). Investment funds: for the purposes of monetary and banking statistics, investment funds comprise investment funds other than money market funds which are resident in the Czech Republic. These are undertakings the sole object of which is collective investment, i.e. pooling investor funds and investing them under conditions stipulated in the Act on Management Companies and Investment Funds (No. 240/2013 Coll.). Such undertakings may be constituted under the Act either as unit trust managed by an investment company or as investment funds. Consolidated balance sheet of the MFI sector: the basic statistical tool of monetary statistics. It is based on the residency principle and is obtained by netting out inter-mfi positions on their aggregated balance sheet. Consumer credit: loans granted to households for personal use in the consumption of goods and services. Contribution to annual growth rate: the growth rate of a selected component weighted by its share in the total growth rate. Deposits redeemable at notice: deposits that can be withdrawn by clients only after the expiry of a period of notice agreed in advance, which starts at the moment of notification of the intention to withdraw the deposit. Deposits with agreed maturity: deposits than cannot be withdrawn by clients before a predefined maturity. Financial corporations engaged in lending (FCLs): Definition: FCLs mean corporations classified within sector S.125 other financial intermediaries which are predominantly engaged in granting credit or loans or entering into agreements of similar nature, for example financial leasing, faktoring, consumere credit, hire purchase, etc. (see Decree No. 314/2013 Coll.) Type of services: 1.Financial leasing - It is financial service, when lessee acquires the right to use good in exchange for rental payment over predetermined term. All risk and rewards of ownership are transferred from lessor to lessee. After lapse of predetermined term ownership of good is transferred from lessor to lessee.

24 2. Factoring - It is financial service consisting in purchase of short-term receivables ( with maturity 30-90 days) before their maturity date. Receivables are transferred on factoring copany factor- by supplier of goods or services. 3. Other lending - This category encompass granting credit or loans or aggreements of similar nature different from financial leasing and factoring. It deals especially with consumer credit, hire purchase, consumption loans, etc. Growth rate: the percentage change in the monitored variable over the reference period, calculated from the volumes of monthly financial transactions and the outstanding amounts at the beginning of each month. Household sector: institutional units included in the sectors of households (S.14) and non-profit institutions serving households (S.15) under ESA2010. Housing loans: Loans granted to households for the purpose of purchasing/investing in housing, including building and home improvements. Interest rate fixation: a period of interest rate fixation, i.e. a period at the beginning of a contract for which the agreed interest rate cannot be changed. Period up to 1 year includes floating rates. MFI longer-term financial liabilities: comprise deposits with an agreed maturity of over two years, deposits redeemable at a period of notice of over three months, debt securities issued with an original maturity of more than two years and the capital and reserves of the Czech MFI sector. Monetary aggregates: comprise the monetary liabilities of monetary financial institutions to non-mfi Czech residents except central government. The narrow monetary aggregate M1 includes currency in circulation (excluding cash at banks cash desks) and overnight deposits. The intermediate monetary aggregate M2 comprises M1, deposits redeemable at a period of notice of up to and including three months and deposits with a maturity of up to and including two years. The broad monetary aggregate M3 comprises M2, money market fund shares/units, debt securities with a maturity of up to two years and repurchase agreements. Monetary financial institutions (MFIs): financial institutions forming the money-issuing sector. Under Community law, these include the central bank, resident credit institutions, and all other resident financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credit and/or invest in securities. In the Czech Republic, MFIs include the central bank, banks, money market funds and credit unions. Money-holding sector: all residents institutional units except central government (S.1311) and monetary financial institutions (S.121, S.122 and S.123) under ESA2010. Money-issuing sector: all institutional units included in the sectors of the central bank (S.121) and other monetary financial institutions (S.122 and S.123) under ESA2010. Money-neutral sector: an institutional sector comprising the central government sector (S.1311) under ESA2010. Money market funds: collective investment undertakings complying with all the following criteria shall be treated as MMFs, where they: (a) pursue the investment objective of maintaining a fund s principal and providing a return in line with the interest rates of money market instruments; (b) invest in money market instruments which comply with the criteria for money market instruments set out in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (*), or deposits with credit institutions or,