[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
    • Other
  • 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.

oz-loans-by-type-timeseries-1990-2016

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)…

oz-loans-by-type-piechart


Background file5-Contessi-PDU-Post5-Bank Lending OZ.zip


Data description:

Financial aggregates are compiled by the RBA using data primarily supplied by banks.
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  • 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.
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