Growth In Korea Money Supply Slows For 3rd Straight Mo In Mar

SEOUL -(Dow Jones)- Growth in South Korea's broadest measure of money supply slowed for a third straight month in March as the pace of rise in loans to companies and households eased, Bank of Korea data issued Monday showed.
The measure, known as L money supply, rose a preliminary 10.6% from a year earlier to KRW2,340.9 trillion ($1.892 trillion), compared with the previous month's gain of 10.8% and a 10.9% rise in January.
L money supply includes cash, deposits at financial institutions and money- market instruments.
"Money supply keeps growing, but at a slower pace as growth in credit loans to companies and households has eased," the central bank said in a statement.
The data come ahead of a rate review Tuesday, when the central bank is expected to keep its benchmark interest rate unchanged at an all-time low of 2.00% for a third straight month amid some signs showing that the economy is improving.
Growth of a sub-indicator, M2, slowed for a 10th straight month, rising 11.1% to KRW1,470.4 trillion in March, after increasing 11.4% in February.
M2 consists of cash in circulation and deposits with maturities of less than two years at banks and non-bank financial institutions, excluding those at insurance and securities companies.
In a separate statement, the BOK said that funding conditions of local corporations improved further in April, helped by the BOK's easing stance in recent months, an increase in the issuance of corporate bonds and expanded bank loans to smaller firms.
The BOK said lending by South Korean banks to businesses rose by KRW3.2 trillion to KRW472.4 trillion in April, a bigger rise than a KRW2.1 trillion increase recorded in March.
Loans to households also rose in April, by KRW1.1 trillion to KRW392.7 trillion, the central bank said.