Big banks make 84.3% of loans in February

Cross-posted from DFA blog:

APRA just released their monthly banking statistics, for February 2014 which shows that of the $1,231 billion lent in the month, 84.3% of investment and owner-occupied loans were from the big four banks. CBA led the way on owner occupied loans, whereas Westpac lent the largest volume of investment loans by value. ANZ remains in fourth place, after nab.

Looking at type of loan by lender, we see that Westpac, Bank of Queensland and HSBC, have the highest proportion of investment loans (ignoring the small volumes to the right of the chart).

Given the RBA’s recent comments, on both lending standards and investment loans, it will be interesting to see if the momentum in the investment loan sector changes. Our surveys indicate ongoing strong demand, so I would not expect to see significant slowing anytime soon.

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About the author

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.