Australian deposit growth firms in March

APRA has released its monthly banking statistics for March and growth improved slightly on the month to 0.6%, the best score this year:

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It is good to see life in the market despite the lure of rising asset prices. Still, the trend towards lower growth is well intact in the year on year chart at 6.9%:

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The aggregate total is also showing a slowing trend:

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A welcome better month but I do expect growth to continue to fall as interest rates do.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. mine-otour in a china shop

    Is this series seasonally adjusted or is it better to look at the year on year rises?

    I also downloaded the historical excel data sheet and noticed significant revisions from Macquarie in Feb 2013. Nice to see this highlighted in the publication.

    In the sub-components deposits from households was revised down by $2bn and appear to be reclassified into loans for financial corporations.

    Loans for housing investment were revised lower by $1bn and reclassified into owner occupied loan and “other” housing loans.

    These are big revisions for an institution – more than $1bn. it might beg the question how could this happen in an ADI? How about the other major banks reporting systems? This is an extremely important variable going forward for policymakers.