5232.0 - Australian National Accounts: Finance and Wealth, Mar 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 27/06/2019   
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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 2018
Mar Qtr 2019
Mar Qtr 2019
Mar Qtr 2019
$b
$b
$b
$b

Non-financial corporations
Investment funds
400.9
3.4
21.2
425.5
Other private
3 490.5
28.3
106.0
3 624.9
Public
128.0
1.7
-
129.7
General government
National
594.5
-4.0
21.3
611.8
State and local
155.0
4.7
0.1
159.8
Households
2 280.4
9.5
4.9
2 294.8
Total
7 049.4
43.5
153.5
7 246.4

- nil or rounded to zero (including null cells)


Credit market rebounds on valuation increases in equities and bonds

Credit market outstanding of the non-financial domestic sectors rose 2.8% in March quarter 2019, following last quarter’s fall of 0.7%. Valuation increases in the equity of other private non-financial corporations drove the result, aided by valuation increases in government bonds as yields fell.

Graph 1. Credit market outstandings
Graph 1 shows Credit market outstandings.


Demand for credit was subdued as the government repays debt

National general government demand for credit fell $4.0b this quarter. Debt repayment outweighed new issuance of bonds for the first time since June quarter 2013, as the government’s net saving position continues to improve.

Credit was raised mainly in the loan market by other private non-financial corporations ($13.7b) and households ($9.9b). However, through the year growth in household borrowing continues to slow due to tighter lending conditions and falling investor demand in the residential property market.

Equity raised by other private non-financial corporations was $12.0b after a subdued December quarter 2018 which reflected the share buy backs of major mining companies.


Graph 2. Total demand for credit
Graph 2 shows Total demand for credit.