Business loans down, household loans up

Credit growth turned negative last month as the business sector in particular continued to shed debt.

The loan books of banks and non-bank lending institutions shrank by 0.1 per cent in September as small increases in lending to the household and farm sectors only partially offset a $900 million decline in business loans.

Total lending at $301.6 billion was down $1.7 billion or 0.6 per cent on September last year.

Lending to farmers was just 1.7 per cent up on September 2009, compared with annual growth of 12 per cent a year ago and 22.3 per cent two years ago.

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Posted: 29 Oct 2010

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