Gap between banks and non-banks widens
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1/03/2010 11:00:00 AM
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Talk of green shoots of recovery has yet to filter though to the market, with banks' dominance of overall lending growing in January
Figures released today by the RBA show that for January 2010, bank loans and advances reached $1,491.6bn (the combined value of their loan books), up from $1,486.2bn in December, while those for non-bank financial institutions decreased from $151.8bn to $150bn (combined loan book value) over the same period.
Overall, total credit provided to the private sector by financial intermediaries rose by 0.4% over January 2010, following an increase of 0.3% over December. Over the year to January, total credit rose by 1.3%.
Housing credit increased by 0.7% over January, following an increase of 0.7% over December. Over the year to January, housing credit rose by 8.2%. Housing credit rose over January due to growth in lending to both owner-occupiers and investors.
Related stories:
US bank lending drops - US banks posted their sharpest decline in lending since 1942 at the end of last year, suggesting that the industry's continued slide is making it harder for the economy to recover
Latest Comments
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Spinner on
02 Mar 2010 01:09 AM
Look, it will probably continue along this trend for 2010. Time is the non Bank''s friend. If they can pull $150b in housing from the Bank''s to date, what is the customers message here. If anything, customers are more alienated by all the things that created the uprising in non banks in the first place.
Peter on
02 Mar 2010 04:02 PM
The figures don''t make sense - how much is $1,491.6bn. I can''t believe the non banks wrote $150bn in one month. They are extraordinary amounts of money. It means the majors are writing about $350bn each per month?
Peter on
02 Mar 2010 04:07 PM
Should not the figures read Banks lent $14.916bn for the month and non banks up to $1.50bn.
Editor on
02 Mar 2010 04:34 PM
The figures refer to the combined value of the banks loan books, as does the non-bank figure. For more info go to: http://www.rba.gov.au/statistics/tables/xls/d02hist.xls