CREDIT MARKET SUMMARY

NON-FINANCIAL DOMESTIC SECTORS

		Credit market outstandings at end	Demand for credit during	Other changes during	Credit market outstandings at end
		Jun Qtr 2016	Sep Qtr 2016	Sep Qtr 2016	Sep Qtr 2016
		$b	$b	$b	$b
Non-financial corporations
	Investment funds	255.5	4.3	-7.3	252.6
	Other private	2 870.5	26.3	28.6	2 925.3
	Public	137.3	-0.8	-	136.5
General government
	National	489.7	23.6	1.4	514.7
	State and local	152.1	3.4	-	155.5
Households		2 031.5	19.6	0.9	2 052.0
Total		5 936.6	76.4	23.6	6 036.6
- nil or rounded to zero (including null cells)

Graph 1. Total demand for credit


Demand for credit during September quarter 2016 was $76.4b. Demand for credit was driven by other private non-financial corporations who raised a net $26.3b, national general government who raised a net $23.6b and households who raised a net $19.6b. Private non-financial investment funds ($4.3b) and state and local general government ($3.4b) also raised credit during the quarter.

Other private non-financial corporations raised credit primarily through issuance of shares and other equity ($23.7b) and loan borrowings ($9.2b), which was partially offset by maturities of bonds ($3.7b) and bills of exchange ($2.6b). National general government raised credit primarily through issuance of bonds ($24.2b). Households raised credit primarily through the loans market with long term loans borrowed from banks ($28.0b), which was partially offset by maturities of long term loans from securitisers ($3.9b) and maturities of short term loans from banks ($1.7b). Private non-financial investment funds raised credit through issuance of shares and other equity ($4.1b). State and local general government raised credit through loans and placements received from central borrowing authorities ($3.4b).


Graph 2. Credit market outstandings


Credit market outstandings of the domestic non-financial sectors at 30 September 2016 was $6,036.6b, an increase of $100.0b from the previous quarter. Demand for credit contributed $76.4b and valuation increases were $23.6b. This valuation increase was mainly driven by shares and other equity.

Other private non-financial corporations sector ($2,925.3b) has the largest credit market outstanding followed by the household sector and national general government, at $2,052.0b and $514.7b respectively.