Credit market summary

		Credit market outstandings at end		Demand for credit during		Other changes during		Credit market outstandings at end
		Dec Qtr 2018		Mar Qtr 2019		Mar Qtr 2019		Mar Qtr 2019
		$b		$b		$b		$b
Non-financial corporations
	Investment funds	400.9		3.4		21.2		425.5
	Other private	3 490.5		28.3		106.0		3 624.9
	Public	128.0		1.7		-		129.7
General government
	National	594.5		-4.0		21.3		611.8
	State and local	155.0		4.7		0.1		159.8
Households		2 280.4		9.5		4.9		2 294.8
Total		7 049.4		43.5		153.5		7 246.4
- nil or rounded to zero (including null cells)

Credit market rebounds on valuation increases in equities and bonds

Credit market outstanding of the non-financial domestic sectors rose 2.8% in March quarter 2019, following last quarter’s fall of 0.7%. Valuation increases in the equity of other private non-financial corporations drove the result, aided by valuation increases in government bonds as yields fell.

Graph 1. Credit market outstandings



Demand for credit was subdued as the government repays debt

National general government demand for credit fell $4.0b this quarter. Debt repayment outweighed new issuance of bonds for the first time since June quarter 2013, as the government’s net saving position continues to improve.

Credit was raised mainly in the loan market by other private non-financial corporations ($13.7b) and households ($9.9b). However, through the year growth in household borrowing continues to slow due to tighter lending conditions and falling investor demand in the residential property market.

Equity raised by other private non-financial corporations was $12.0b after a subdued December quarter 2018 which reflected the share buy backs of major mining companies.


Graph 2. Total demand for credit