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 2018		Dec Qtr 2018		Dec Qtr 2018		Dec Qtr 2018
		$b		$b		$b		$b
Non-financial corporations
	Investment funds	401.2		-2.1		-0.8		398.4
	Other private	3 574.9		15.1		-108.8		3 481.2
	Public	124.8		3.1		-		127.9
General government
	National	585.1		2.3		7.0		594.4
	State and local	150.8		4.1		-		155.0
Households		2 257.2		19.0		4.6		2 280.8
Total		7 094.1		41.5		-98.0		7 037.5
- nil or rounded to zero (including null cells)

DOWNTURN IN THE CREDIT MARKET REFLECTS REVALUATION OF EQUITY HOLDINGS

Credit market outstanding of the non-financial domestic sector recorded the first decrease since June quarter 2012. Valuation decreases in the equity of other private non-financial corporations drove the result, outweighing demand for credit during the quarter.

Credit was raised mainly in the loan market driven by other private non-financial corporations borrowing from banks. Growth in household borrowing continues to slow due to tighter lending conditions and falling investor demand. A large proportion of residential mortgages were moved off the bank balance sheets to their securitisers.

Equity raised by other private non-financial corporations was subdued, at $6.8b, due to share buy backs of major mining companies following the sale of some of their overseas assets.



While households demand for credit was larger than the other private non-financial corporations sector this quarter, the sector had the largest credit market outstanding at $3,481.2b, followed by households at $2,280.8b and national general government at $594.4b.