CREDIT MARKET SUMMARY

NON-FINANCIAL DOMESTIC SECTORS

		Credit market outstandings at end	Demand for credit during	Other changes during	Credit market outstandings at end
		Dec Qtr 2016	Mar Qtr 2017	Mar Qtr 2017	Mar Qtr 2017
		$b	$b	$b	$b
Non-financial corporations
	Investment funds	260.4	2.8	-0.8	262.3
	Other private	3 011.4	5.0	21.6	3 038.1
	Public	121.9	-	-	121.9
General government
	National	513.4	18.5	3.3	535.2
	State and local	146.6	-0.6	-	146.0
Households		2 081.6	20.6	1.4	2 103.6
Total		6 135.3	46.3	25.5	6 207.1
- nil or rounded to zero (including null cells)

Graph 1. Total demand for credit


Demand for credit during March quarter 2017 was $46.3b. This was driven by households ($20.6b) and national general government ($18.5b) who raised credit throughout the March quarter with smaller contributions by non-financial corporations of $7.8b.

Households raised credit primarily through the loans and placements market with long term loans borrowed from banks of $23.8b, being the main source of credit. National general government raised $18.0b of credit primarily through the issuance of bonds. Other private non-financial corporations raised $10.5b of credit primarily through issuance of shares and other equity.


Graph 2. Credit market outstandings


Credit market outstandings of the domestic non-financial sectors as at 31 March 2017 was $6,207.1b, an increase of $71.8b from the previous quarter. Demand for credit contributed $46.3b and valuation increases were $25.5b. The valuation increase was mainly driven by shares and other equity issued by other private non-financial corporations.

Other private non-financial corporations sector ($3,038.1b) has the largest credit market outstanding followed by the households sector ($2,103.6b) and national general government at $535.2b.