FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Jun Qtr 2016	Sep Qtr 2016	Sep Qtr 2016	Sep Qtr 2016
		$b	$b	$b	$b
Currency and deposits
	Currency	74.8	1.8	-	76.5
	Transferable deposits	761.4	16.0	-1.0	776.4
	Other deposits	1 490.9	49.2	-11.8	1 528.3
Short term debt securities
	Bills of exchange	63.1	-3.8	-	59.3
	One name paper	428.3	-15.6	-2.7	409.9
Long term debt securities
	Bonds, etc.	2 394.9	16.8	-6.1	2 405.7
Derivatives
	Derivatives	633.5	-120.7	34.1	546.9
Loans and placements
	Short term	346.7	-16.9	-0.5	329.3
	Long term	3 441.1	30.0	-3.5	3 467.5
Shares and other equity
	Listed	1 617.2	14.3	62.2	1 693.8
	Unlisted	2 960.6	-39.2	25.8	2 947.2
Insurance technical reserves
	Reserves of pension funds and life offices	2 059.2	12.3	44.8	2 116.2
	General insurance prepayments and reserves	106.6	2.9	-	109.4
- nil or rounded to zero (including null cells)

Total deposits increased $52.4b (2.3%) in September quarter 2016, recording 19 quarters of consecutive growth, with net transactions of $65.2b and a valuation decrease of $12.8b. The increase in total deposits was driven by growth in both other deposits (2.5%) and transferable deposits (2.0%). Other deposit growth was driven by households ($16.1b) and rest of world ($5.8b) depositing into banks. Households ($8.8b) and rest of world ($5.3b) depositing with banks were also the main drivers of growth in transferable deposits.

Bonds increased $10.8b (0.5%), with net transactions of $16.8b offset by revaluations of -$6.1b in September quarter 2016. Net transactions were driven by issuances in the domestic market ($30.5b). Net transactions in bonds issued in Australia were driven by net issuances from national general government ($24.4b), banks ($8.2b), and central borrowing authorities ($3.7b), and offset by net maturities from securitisers (-$4.6b). Revaluation increases recorded in the domestic market ($0.7b) were offset by decreases in the offshore market (-$6.8b). Main drivers of offshore revaluation decrease were banks (-$6.1b) and other private non-financial corporations (-$3.5b), partially offset by rest of world ($3.2b).

The loan market increased $9.1b (0.2%) with net transactions of $13.1b. Net transactions during September quarter 2016 were driven by long term loans ($30.0b), as households ($28.0b) and other private non-financial corporations ($8.7b) continue to increase loan borrowings from banks. The net positive transactions in long term loans were partially offset by negative transactions in short term loans of $16.9b, which were driven by repayments on loans borrowed by banks from rest of world (-$12.1b).

The listed share market increased $76.5b (4.7%) in September quarter 2016, with net transactions of $14.3b and a valuation increase of $62.2b. Other private non-financial corporations shares recorded the largest valuation increase ($42.8b), followed by banks ($21.5b). This valuation increase in bank shares follows two consecutive quarters of valuation decreases.