Financial Aggregates July 2019

From this release onward, the financial aggregates incorporate an improved conceptual framework and a new data collection. This is referred to as the Economic and Financial Statistics (EFS) collection. For more information, see Updates to Australia’s Financial Aggregates. All growth rates have been adjusted for the effects of series breaks resulting from these changes. Minor revisions to the historical growth rates of the financial aggregates reflect improvements in the RBA’s seasonal adjustment processes. Revisions to the historical growth rates of the money aggregates – specifically M3 and Broad Money – also reflect methodological improvements to their production.

The implementation of the EFS collection has led to larger-than-usual movements in the levels of the outstanding stocks of series published in the table Lending and Credit Aggregates – D2 between June and July 2019. In particular, the EFS collection seeks to resolve ambiguity about the classification of finance according to its purpose and residency. The sample of entities participating in the collection has also changed and the measurement of housing credit extended by non-authorised deposit-taking institutions has improved. Some of the key changes resulting from the EFS collection are reclassifications between: owner-occupier housing loans and investor housing loans; housing loans and other personal loans; and loans to residents and loans to non-residents (loans to non-residents are not included in the credit aggregates). In combination, these changes have led to: decreases in the levels of total credit, business credit, housing credit and owner-occupier housing credit; and increases in the levels of other personal credit and investor housing credit. In contrast to the published growth rates, the levels of the credit aggregates are not adjusted for series breaks. Growth rates should not be calculated from data on the levels of credit.

The table Monetary Aggregates – D3 has changed; for more information, please see the change notice published on 31 July 2019. The history of M1 has been revised to include all transaction deposits, whereas previously some of these deposits were only included in M3. The history of M3 and Broad Money has also been revised, reflecting minor conceptual changes. Beyond these historical revisions, movements in transaction and non-transaction deposits between June and July 2019 are larger than usual. This is because the EFS collection used to compile the monetary aggregates more accurately classifies deposits by their type. The levels of the monetary aggregates are not adjusted for series breaks. Growth rates should not be calculated from data on the levels of money.

Owing to the EFS collection, ‘Net switching of housing loan purpose – from investor to owner-occupied within the same lender’ will now be published with a one-month delay.

As usual, all growth rates for the financial aggregates are seasonally adjusted, and adjusted for the effects of breaks in the series as recorded in the notes to the tables listed below. Data for the levels of financial aggregates are not adjusted for series breaks. The RBA credit aggregates measure credit provided by financial institutions operating domestically. They do not capture cross-border or non-intermediated lending.