FINANCIAL MARKET SUMMARY

SELECTED FINANCIAL INSTRUMENTS

		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Dec Qtr 2015	Mar Qtr 2016	Mar Qtr 2016	Mar Qtr 2016
		$b	$b	$b	$b
Currency and deposits
	Currency	76.0	-1.2	0.0	74.8
	Transferable deposits	740.7	5.7	-1.3	745.1
	Other deposits	1 461.6	20.0	-10.3	1 471.3
Short term debt securities
	Bills of exchange	70.0	-3.4	0.0	66.6
	One name paper	449.4	-11.9	-2.4	435.2
Long term debt securities
	Bonds, etc.	2 351.4	37.1	-3.2	2 385.2
Derivatives
	Derivatives	486.0	-53.8	167.0	599.2
Loans and placements
	Short term	366.7	-21.9	-3.3	341.5
	Long term	3 414.8	36.5	5.9	3 457.2
Shares and other equity
	Listed	1 627.5	5.2	-66.1	1 566.6
	Unlisted	2 951.1	13.1	-58.1	2 906.1
Insurance technical reserves
	Reserves of pension funds and life offices	2 000.4	17.1	-37.7	1 979.8
	General insurance prepayments and reserves	103.8	-0.1	0.0	103.7

The listed share market decreased $60.9b in March quarter 2016, with net transactions of $5.2b and a valuation decrease of $66.1b. All sectors (excluding private non-financial investment funds) showed revaluation decreases in March quarter 2016 with bank shares recording the largest valuation decrease ($60.5b) followed by other private non-financial corporations ($4.1b). These valuation decreases were offset by an increase in private non-financial investment funds ($3.7b).

Net transactions in the loan market was $14.6b in March quarter 2016, driven by long term loans ($36.5b) as households ($26.7b) and other private non-financial corporations ($12.6b) continue to increase loan borrowings from banks. Short term loans offset the net positive transactions in long term loans with net repayments of $21.9b driven by repayments on loans borrowed from rest of world (-$22.5b).

Total deposits increased $14.0b in March quarter 2016, with net transactions of $25.6b and a valuation decrease of $11.6b. The increase in total deposits was driven by other deposits growing 0.7% in March quarter 2016. Other deposits grew at a faster rate than transferable deposits (0.6%) for the first time since March quarter 2014. National general government term deposits with the central bank ($11.3b) and households deposits into banks ($8.5b) were the main drivers of growth in other deposits.

Bonds increased $33.9b with net transactions of $37.1b offset by revaluations of -$3.2b in March quarter 2016. Net transactions in bonds were driven by net issuances from the national general government ($22.1b) and banks ($14.2b).