Credit down but deposits jump
(1 July 2009 – Australia) The latest monthly RBA financial aggregates show a decrease in credit in May, despite a significant jump in deposits to banks.
While last month the increase in housing credit was enough to push total credit upwards, this month stronger falls in business credits has led to a 0.1 percent fall in total credit provided by financial institutions.
Despite the slowdown in lending, current deposits with banks jumped A$5.3 billion to A$199.3 billion over the last month, a significant monthly increase of 2.7 percent.
Business credit fell by 0.7 percent compared to last month, the most of any credit type. It is the fourth consecutive month that business credit has fallen, while the level in May 2009 is just 2.1 percent higher than it was 12 months ago.
Business credit now sits at A$746.6 billion, A$6.6 billion less than last month.
Since its peak in November 2008, the decline in business credit has been due to falls in foreign currency denominated lending, the RBA said.
These falls reflect both the appreciation of the Australian dollar over this period and some reduction in the stock of foreign currency denominated lending.
Owner occupier housing continues to growth at faster rates than investor housing credit, with the former still moving at a 12 month average of 8.5 percent.
The 12 month growth, however, is down on the circa 16 percent highs experienced near the end of 2006.
Despite the slowdown in lending, current deposits with banks jumped A$5.3 billion to A$199.3 billion over the last month, a significant monthly increase of 2.7 percent.
Business credit fell by 0.7 percent compared to last month, the most of any credit type. It is the fourth consecutive month that business credit has fallen, while the level in May 2009 is just 2.1 percent higher than it was 12 months ago.
Business credit now sits at A$746.6 billion, A$6.6 billion less than last month.
Since its peak in November 2008, the decline in business credit has been due to falls in foreign currency denominated lending, the RBA said.
These falls reflect both the appreciation of the Australian dollar over this period and some reduction in the stock of foreign currency denominated lending.
Owner occupier housing continues to growth at faster rates than investor housing credit, with the former still moving at a 12 month average of 8.5 percent.
The 12 month growth, however, is down on the circa 16 percent highs experienced near the end of 2006.
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