ANALYSIS AND COMMENTS MARKET SUMMARY
FINANCIAL MARKET ANALYSIS
Deposit liabilities increased to $1,076.4b at the end of December 2006, following transactions of $56.6b during the quarter, compared with transactions of $33.3b in the previous quarter. Banks accepted $32.3b (up $4.2b on that accepted last quarter), other depository corporations accepted $10.5b (up $6.5b), and the central bank accepted $10.1b (up $9.6b).
Selected Financial Instruments
Sep Qtr 2006
Dec Qtr 2006
Dec Qtr 2006
Dec Qtr 2006
|Selected Financial Instruments |
|Currency and deposits |
|Short term debt securities |
|Long term debt securities |
|Loans and placements |
|Listed shares |
|Unlisted shares |
|Reserves of life offices and pension funds |
|General insurance prepayments and reserves |
Short term security liabilities increased to $461.0b at the end of December 2006. There were net issues of $17.4b, comprised of $5.0b in issues of bills of exchange and $12.4b in one name paper. Total long term debt security liabilities increased to $885.6b at the end of December 2006, following issues of $22.8b during the quarter of which $1.5b was issued domestically and $21.3b was issued offshore. Banks issued $14.4b, of which $0.9b was issued domestically and $13.4b issued offshore. During the quarter rest of the world had net issuance of $6.9b.
The value of derivative contracts on issue at the end of December 2006 increased by $35.0b to $189.2b. Components of the increase were net issues of $0.1b and valuation increases of $35.0b.
Loan liabilities rose to $2,329.2b at the end of December 2006, following transactions of $83.3b during the quarter. Borrowing by households was $23.5b, pension funds borrowed $27.1b and private non-financial corporations borrowed $17.6b.
The listed share market increased by $165.3b to $1,407.3b at the end of December 2006, with issues of $33.9b and valuation increases of $131.5b. Private non-financial corporations had issues of $11.9b and financial intermediaries n.e.c. issued $19.2b. The value of the unlisted share market increased to $1,155.9b at the end of December 2006, with issues of $11.2b and valuation increases of $29.3b. Rest of the world had issues of $8.5b and financial intermediaries n.e.c. issued $1.1b.
At the end of December 2006, the reserves of life offices and pension funds were $1,020.3b following transactions during the quarter of $15.5b and valuation increases of $40.9b. General insurance prepayments and reserves were $64.4b.