1360.0 - Measuring Australia's Economy, 2003  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
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Contents >> Section 8. Financial Markets >> Financial Accounts

Total demand for credit by the non-financial sectors during the year ended June 2002 was $114.1b. At the end of 30 June 2002, total credit market outstandings were $1755.7b. The increase in demand for credit for the most recent four quarters has been the result of increasing demand by the household sector, increasing from $42.9b to $78.3b in loans and placements over the 12 month period ended June 2002.



DEMAND FOR CREDIT ($b)
Period
1997–98
1998–99
1999–2000
2000–01
2001-02
Total funds raised on conventional credit markets by non-financial domestic sectors
99.9
96.1
128.8
86.1
114.1
Private non-financial corporations
Bills of exchange
3.7
3.7
4.6
4.0
-1.3
One name paper
0.4
5.2
5.7
-4.7
-1.9
Bonds
4.9
10.6
10.8
8.1
2.6
Loans and placements
19.9
17.6
10.5
21.5
11.12
Shares and other equity (a)
37.7
26.0
30.6
19.9
26.5
National public non-financial corporations
Bills of exchange
0.0
0.1
0.1
0.0
-0.2
One name paper
0.2
0.4
0.7
0.1
-0.9
Bonds
0.5
0.3
1.8
3.1
2.4
Loans and placements
-3.4
0.2
-0.1
0.9
-0.6
Shares and other equity (a)
14.3
-0.3
16.1
0.0
0.0
State and local public non-financial corporations
Bills of exchange
0.3
0.0
-0.1
0.1
0.2
Bonds
0.0
-0.1
0.0
0.0
0.0
Loans and placements
-1.7
-0.3
1.0
3.1
1.0
National general government
One name paper
-3.0
-2.3
-1.9
-0.7
-0.9
Bonds
-15.5
-5.4
-8.8
-8.9
-2.4
State and local general government
Bonds
0.1
0.0
0.1
0.0
-0.2
Loans and placements
-0.1
-3.2
-3.5
-4.1
-0.4
Households
Bills of exchange
0.1
0.5
0.6
0.6
-0.1
Loans and placements
41.1
43.3
60.5
42.9
78.3
(a) These estimates are considered to be of poor quality.
Note: Positive numbers indicate an increase in borrowings. Negative numbers indicate debt repayments.

Source: Australian National Accounts: Financial Accounts (5232.0).


Explanatory Notes

The table presents a summary of the demand for credit in Australia by the non-financial domestic sectors. It includes annual net raisings of credit, by the issue of both debt and equity, on conventional credit markets. The ABS defines conventional credit markets to include the share, bond, money and loan markets, in Australia and overseas which are reasonably open to all potential borrowers wishing to raise capital by means of loans, debt securities, shares and units.

Credit may be defined broadly as funds provided to those seeking to borrow. However, analytically useful measures of credit usually exclude borrowings by financial enterprises because their main role is as an intermediary, i.e. they borrow in order to lend to others (creating loan assets). Hence, including both the liabilities and loan assets of financial intermediaries in the table would be double counting. Also excluded are all non-market funding arrangements, such as debt and equity claims between related companies, levels of government, and governments and their trading enterprises, as are some types of financial instruments, such as trade debts, not considered to be part of an organised market.

The aggregate at the head of the table is a measure of the primary credit flow in Australia; that is, credit which is to be used primarily to finance non-financial outlays such as investment in plant and equipment.

Further Reading

Australian National Accounts: Concepts, Sources and Methods (5216.0)
Contains a detailed explanation of the system of Australian national accounts outlining major concepts and definitions.

Australian National Accounts: Financial Accounts (5232.0)
Presents data on the level (stock) of financial assets and liabilities of each sector of the economy; the market for each of the conventional financial instruments; and inter-sectoral transactions in financial assets and liabilities.



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