[I know, I know… not a surprise]
Aggregate banking data in Australia break down loans somewhat differently compared to U.S. data seen in a previous post. They are structured more like Flows of Funds data, if you wish, meaning that they are categorized depending on the end-user/borrower. This is particularly true for the category called “Lending to persons, housing” that can be either for owner-occupied housing or for investors. What is called “Consumer loans” or “Individual Loans” in U.S. banking data – other personal loans here – is broken down in fixed loans and revolving loans. Commercial lending is either to financial intermediaries or to the business sector. Maybe a bit boring but very useful to know what we are talking about.
- Lending to government:
- Public sector securities
- Lending to persons:
- Housing; Owner-occupiers
- Housing; Investors
- Lending to persons:
- Other personal; Fixed loans
- Other personal; Revolving loans
- Commercial lending:
- Financial intermediaries
- Business sector
A more detailed (bullettized) description is attached below, essentially the summary information contained in the data release from RBA.
In these line and pie-chart graphs, I regrouped loans trying to match, by and large, the U.S. classification. I also changed the palette to something warmer, to distinguish Australia from the U.S. Australia is definitely warmer, especially at its core.
Obviously, not a perfect comparison with the United States but ainteresting similarities nevertheless, especially the pie charts used in the heading and rearranged from the following ones and those of a previous post.
The growth of the share of real estate loans lending for Australia 1990-2016 (yellow slice, bottom pie-charts), could be easily confused for the analogous measure for the U.S. of A. 1980-2007 (purple slice, top pie-charts)…
Background file: 5-Contessi-PDU-Post5-Bank Lending OZ.zip
“Financial aggregates are compiled by the RBA using data primarily supplied by banks.
- All data exclude securitisations and lending to non-residents.
- For ‘Lending to government’, ‘Other’ includes credit cards.
- ‘Persons’ refers to individuals who conduct their affairs with the bank on a non-business basis.
- ‘Housing – Owner-occupiers’ refers to loans to individuals for owner-occupied housing, and finance for the purchase of land where construction of a dwelling for owner occupation is expected. [ ]
- ‘Housing – Investors’ refers to loans to individuals for investment (i.e. non owner-occupied) housing, and finance for the purchase of land where construction of a dwelling for non-owner occupation is expected. Prior to January 1990, figures were not separately identified, but were included mainly in fixed personal and commercial loans and owner-occupied housing. Prior to November 1993, data include some investment housing lending to business enterprises.
- ‘Commercial lending’ refers to loans to, and bills drawn by: banks, non-bank financial institutions, trading companies (government and private), unincorporated enterprises and non-profit organisations, for use in connection with the business carried on by them. Until August 1996, data included loans to authorised short-term money market dealers.
From April 2002, ‘Commercial lending’ includes funds advanced through purchases of marketable debt securities.
- The RBA credit aggregates measure credit provided by financial institutions operating domestically. They do not capture cross-border or non-intermediated lending.“