CREDIT MARKET SUMMARY

NON-FINANCIAL DOMESTIC SECTORS

		Credit market outstandings at end	Demand for credit during	Other changes during	Credit market outstandings at end
		Dec Qtr 2015	Mar Qtr 2016	Mar Qtr 2016	Mar Qtr 2016
		$b	$b	$b	$b
Non-financial corporations
	Investment funds	241.7	3.1	2.5	247.4
	Other private	2 756.7	39.1	-8.5	2 787.3
	Public	127.0	3.7	0.0	130.7
General government
	National	447.3	22.0	7.3	476.6
	State and local	153.4	1.9	0.0	155.4
Households		2 024.1	24.2	1.2	2 049.5
Total		5 750.2	94.1	2.6	5 846.9

Graph 1. Total demand for credit


Demand for credit during March quarter 2016 was $94.1b. Other private non-financial corporations raised a net $39.1b, households raised a net $24.2b and national general government raised a net $22.0b.

Other private non-financial corporations raised credit primarily through issuance of shares and other equity ($20.3b), loan borrowings ($12.1b) and issuance of bonds ($9.2b), which was partially offset by maturities of bills of exchange ($2.7b). Households raised credit primarily through the loans market with long term loans borrowed from banks ($26.7b), which was partially offset by maturities of bills of exchange ($0.5b). National general government raised credit through bond issuances ($22.2b) which was partially offset by loans and placements repayments of $0.1b.


Graph 2. Credit market outstandings


Credit market outstandings of the domestic non-financial sectors at 31 March 2016 was $5,846.9b, an increase of $96.7b from the previous quarter. Demand for credit contributed $94.1b and valuation increases were $2.6b. This valuation increase was mainly driven by bonds issued in Australia, partially offset by valuation decreases in shares and other equity.

Other private non-financial corporations sector ($2,787.3b) has the largest credit market outstanding followed by the household sector and national general government, at $2,049.5b and $476.6b respectively.