Latest Banking Statistics...
APRA released the 30th October 2010 Banking Statistics this morning. The theme of weak overall credit growth appears to be continuing. The biggest weakness is in the Commercial lending area.
Commercial Lending over the past 12 months has decreased by $350 million. This is also reflected on the deposit side of the Commercial Sector as it de-leverages, with deposits increasing by $27 Billion, or 8.7%.
The only lending continues to be in the housing sector, with an annual growth rate of between 9% to 10%, but recent growth rates have slowed to around 8%.
The main growth has been in investment securities (Government Bonds?). This has increased by $73 Billion or 63%, with the asset class accounting for the majority of the monthly increase in Bank assets.
As the Government and the RBA keep saying, the expected growth is coming next year, but at this stage, things look less than promising.