Private Sector Credit YoY

Private Sector Credit YoY is the 12-month change in Total credit in the Reserve Bank of Australia's monthly Financial Aggregates release. It covers loans, including securitised loans, from domestic lenders to households and non-financial businesses, using balance sheet records collected through APRA.

It excludes cross-border loans, non-intermediated debt such as corporate bonds, and separately reported government lending. A parallel series since the March 2023 release excludes warehouse trust lending from business credit. Inputs use the Economic and Financial Statistics system, and policymakers use growth to assess activity and stability risks, with no target level.

Lenders report end-month loan stocks by the 10th business day of the next month through APRA, with about 5 working days of checks. The RBA publishes results on the last business day of the next month at 11:30 am Sydney time, about 4 weeks after month end. Each release shows 1-month and 12-month changes for Total, Housing, Personal and Business credit plus Broad money.

Tables D1, D2 and D3 carry the data with footnotes, and sources are ABS, APRA and RBA. Levels and growth rates are revised for resubmissions, re-estimated seasonal factors and new securitisation data.

Total growth reflects its three parts, so the largest groups move the headline most.

• Housing credit, about 62%: loans to households to buy housing, covering main-residence owner-occupier loans and investor loans for other housing.
• Personal credit, about 5%: credit cards, margin loans and other household loans for consumption such as cars and holidays.
• Business credit, about 33%: loans to non-financial businesses to fund projects, buy assets or manage cash flow, excluding market debt tracked separately.

The November 29, 2024 release for October 2024 put Total credit up 0.6% monthly and 6.1% yearly, after 4.8% in October 2023. Business credit led at 1.0% monthly and 8.3% yearly, Housing followed at 0.5% and 5.3%. Personal credit stayed soft at 0.1% monthly and 2.2% yearly, while Broad money rose 1.0% and 6.3%. The lesson is that business drove the acceleration while household borrowing stayed soft, on seasonally adjusted and break-adjusted figures.

1. Stocks: APRA collects loan items from each lender, and the RBA sums them without double counting, using end-month balances.

1. Coverage: The total adds securitised off-balance-sheet loans plus estimated non-traditional lender loans, covering all intermediated lending.

1. Break adjustment: Growth strips out mergers, new entrants, asset transfers, reclassifications and coverage changes, but published levels keep them.

1. Seasonal adjustment: The break-adjusted series uses the X-12-ARIMA program on a concurrent basis, with factors re-estimated each month.

1. Growth formula: Year-ended growth equals adjusted stock divided by adjusted stock 12 months earlier, minus 1, times 100, with monthly growth using the prior month.

1. Illustrative example: Adjusted stocks of 3796bn a year earlier, 4000bn the prior month and 4024bn in the reference month give 0.6% monthly and 6.0% yearly. If a merger added 10bn to reported levels, that 10bn is removed for the rates while levels still include it.