Monday, April 30

Where are the banks getting their money?

Today's credit aggregates for March (table d03) include a number of data items on money with the banks. These funds are available to banks for making loans.

First we have current deposits with banks, which have been growing steadily. These are the everyday accounts that allow money to be deposited and withdrawn at any time.

Next we have have certificates of deposits issued by banks. Growth in these instruments has been fairly steady since the onset of the GFC. 

But growth in term deposits with banks has been dramatic since the onset of the GFC.

Other deposits with banks have grown at much the same rate since the GFC as before the GFC.

And finally, growth in offshore borrowings by all financial intermediaries has flat-lined since the GFC.

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