CREDIT MARKET SUMMARY

NON-FINANCIAL DOMESTIC SECTORS

		Credit market outstandings at end	Demand for credit during	Other changes during	Credit market outstandings at end
		Mar Qtr 2017	Jun Qtr 2017	Jun Qtr 2017	Jun Qtr 2017
		$b	$b	$b	$b
Non-financial corporations
	Investment funds	262.8	2.4	-5.1	260.0
	Other private	3 014.5	33.4	31.4	3 079.3
	Public	121.9	-1.7	-	120.3
General government
	National	536.3	17.6	-0.6	553.2
	State and local	146.0	-0.6	-	145.4
Households		2 104.0	37.1	-1.7	2 139.4
Total		6 185.5	88.1	24.0	6 297.6
- nil or rounded to zero (including null cells)

Graph 1. Total demand for credit



Demand for credit during June quarter 2017 was $88.1b. This was driven by households ($37.1b) and other private non-financial corporations ($33.4b) who raised credit throughout the June quarter with a smaller contribution by national general government of $17.6b.

Households raised credit primarily through the loans and placements market, with long term loans increasing $36.7b, driven by borrowings from banks of $66.3b offset by a decrease from securitisers of $30.0b (For further information on the treatment of securitisation please refer to the technical note in this publication). Other private non-financial corporations raised $30.3b of credit primarily through issuance of shares and other equity. National general government raised $18.0b of credit primarily through the issuance of bonds.

Graph 2. Credit market outstandings



Credit market outstandings of the domestic non-financial sectors as at 30 June 2017 was $6,297.6b, an increase of $112.1b from the previous quarter. Demand for credit contributed $88.1b with valuation increases of $24.0b. The valuation increase was mainly driven by shares and other equity issued by other private non-financial corporations.

Other private non-financial corporations sector ($3,079.3b) has the largest credit market outstanding followed by the households sector ($2,139.4b) and national general government at $553.2b.