5232.0 - Australian National Accounts: Finance and Wealth, Dec 2016 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 30/03/2017   
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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
Sep Qtr 2016
Dec Qtr 2016
Dec Qtr 2016
Dec Qtr 2016
$b
$b
$b
$b
Non-financial corporations
Investment funds
253.7
9.8
-0.3
263.2
Other private
2 926.7
64.0
17.3
3 008.0
Public
136.5
-14.5
-
121.9
General government
National
514.8
23.3
-24.7
513.4
State and local
155.2
-8.5
-0.1
146.6
Households
2 052.0
28.6
2.7
2 083.3
Total
6 038.9
102.7
-5.1
6 136.4
- nil or rounded to zero (including null cells)


Graph 1. Total demand for credit
Graph Image for Graph 1. Total demand for credit.

Source(s): Table 2. Demand for Credit ($ million)



Demand for credit during December quarter 2016 was $102.7b. This was driven by other private non-financial corporations, households and national general government who raised credit throughout the December quarter and was partially offset by state and local non-financial corporations and state and local general governments.

Other private non-financial corporations raised credit primarily through issuance of shares and other equity, loan borrowings and bond issuance.

Households raised credit primarily through the loans and placements market with long term loans borrowed from banks being the main source of credit.

National general government raised credit primarily through issuance of bonds.

State and local non-financial corporations and state and local general governments reduced credit through repayment of loans and placements with central borrowing authorities in December quarter 2016.


Graph 2. Credit market outstandings
Graph Image for Graph 2. Credit market outstandings

Source(s): Table 1. Credit Market Outstandings ($ million)

.

Credit market outstandings of the domestic non-financial sectors as at 31 December 2016 was $6,136.4b, an increase of $97.5b from the previous quarter. Demand for credit contributed $102.7b and valuation decreases were $5.1b. The valuation decrease was mainly driven by market price decreases of long term debt in the quarter caused by rising yields.

Other private non-financial corporations sector ($3,008.0b) has the largest credit market outstanding followed by the household sector and national general government, at $2,083.3b and $513.4b respectively.