RBA: Business not getting credit
(4 August 2009 – Australia) The latest financial aggregates from the RBA show that business credit has fallen for the fifth consecutive month, with nearly A$24 billion less credit currently with businesses than there was at the start of the year.
RBA’s June 2009 Financial Aggregates show that total credit has increased, albeit by a slender 0.1 percent over the month. Despite this, credit to businesses has not been growing; falling 0.5 percent in the month.
Total credit has been bolstered in particular by retail credit; with owner-occupied credit improving by the greatest amount over the month. Credit to owner-occupiers has increased 8.8 percent over the year to A$725 billion.
Business credit has not faired well, however, growing by just 0.5 percent over the year to the end of June 2009.
Since business credit grew to A$763 billion in January 2009, it has been steadily falling to A$739.7 billion in June.
The 0.5 percent yearly growth compares unfavourably to the 12 months to June 2008, which saw growth of 17 percent, and the 12 months to June 2007, which saw business credit growth of 19.1 percent.
The RBA’s financial aggregates also show that bank deposits are surging ahead. Monthly growth in June was a massive 5.65 percent, or A$11.2 billion greater than in May. June’s bank deposits figure reached A$210.5 billion.
Total credit has been bolstered in particular by retail credit; with owner-occupied credit improving by the greatest amount over the month. Credit to owner-occupiers has increased 8.8 percent over the year to A$725 billion.
Business credit has not faired well, however, growing by just 0.5 percent over the year to the end of June 2009.
Since business credit grew to A$763 billion in January 2009, it has been steadily falling to A$739.7 billion in June.
The 0.5 percent yearly growth compares unfavourably to the 12 months to June 2008, which saw growth of 17 percent, and the 12 months to June 2007, which saw business credit growth of 19.1 percent.
The RBA’s financial aggregates also show that bank deposits are surging ahead. Monthly growth in June was a massive 5.65 percent, or A$11.2 billion greater than in May. June’s bank deposits figure reached A$210.5 billion.
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