Supporting information:

Survey notes for tables C1-C10

Chronology of changes to tables and current status

June 2008: Revised respondent grouping for tables C7 & C8

Table C7 provides a sector breakdown of registered bank lending in New Zealand dollars (NZD). The sectoral split is based on the ANZSIC classification as produced by Statistics New Zealand, with the addition of household and non-resident sectors. Prior to November 2004, a sectoral breakdown of lending by M3 institutions was published monthly. This historical data can be found with other discontinued tables.

August 2007: Treasury coin

In May 2005, the liability for coins issued by The Treasury prior to July 1989 was transferred to the Reserve Bank of New Zealand balance sheet. Prior to May 2005, coins issued by The Treasury represent the difference between the value of "Currency in circulation" recorded in the monetary tables C1 and C3 and that shown in table F1 (Reserve Bank of New Zealand Liabilities).

With the introduction of new coins in mid 2006, all old cupronickel ("silver") coin issued but not returned to the Bank were demonetised in the Reserve Bank's accounts from November 2006.

The liability for demonetised currency which has not been returned to the Bank has been removed from the liability for “Currency in circulation”. It remains on the Reserve Bank's balance sheet and is included in “Other liabilities”.

Refer to the contingent liabilities note in the Bank's latest annual report for details of the Bank's accounting policies for “Currency in circulation” together with details of its contingent liabilities.

"Currency in circulation" in Table C1 and C3 from August 2006 to June 2007 has been revised to fully capture these changes.

May 2006: Tables C1-C4 (Money and Credit Aggregates)

In February 2006, a respondent to the money and credit aggregate survey acquired assets previously not included in the series. The additional credit represents less than 0.3 per cent of resident private sector credit and is around a quarter of the net increase in PSC(R) for the month of February 2006. Total liabilities of M3 institutions increased approximately 0.2 per cent. This change is not considered material. The money and credit aggregates reflect this series break without any adjustment to growth rates.

February 2005: Sectoral Analysis of Funding (Registered Banks)

On 25 February 2005 the level of household deposits in Table C8 was revised upwards from December 2000 onwards. The historical data are available in the discontinued series section of the website.

December 2004: Increase in coverage of surveyed institutions and improved classification and sectorization of claims and funding

A: Tables C1-C4 - Money and credit aggregates

Money and credit aggregate series continue to be drawn from the M3 SSR survey. No changes have been made in any respect to this series.

B: Table C5 - Sector credit (registered banks and NBLIs)

The data surveys were extended in scope from December 2004. All registered bank agriculture, business and household sector credit is now included, along with a similar identification of sector credit derived from a more comprehensive coverage of non-bank lending institutions (NBLIs). These data were backdated monthly, retaining the integrity of the previous series and linking it on a ‘like for like’ basis. The business sector credit series begins in June 1998: the agriculture and total household claims series commence as before at December 1990.

Sector credit for households and business is distinguished by registered bank and NBLI institutional group from June 1998.

C: Table C6 – Total household claims (registered banks and NBLIs)

The data surveys were extended in scope from December 2004. All registered bank household sector credit is now included, along with improved identification of the household sector derived from a more comprehensive coverage of non-bank financial institutions (NBLIs). These data were backdated monthly, retaining the integrity of the previous series and linking it on a ‘like for like’ basis. The household claims series commence at December 1990. Table C6 now distinguishes sector credit for households by registered bank and NBLI institutional group from June 1998.

D: Sectoral analysis of claims (registered banks)

An earlier version of C7 table, extracted from the M3 SSR, was discontinued as at the end of November 2004. A new C7, based on improved classification and sectorization of the accounts was introduced and is equivalent to the data presented in Part D of the new aggregate registered bank SSR. Please see the discontinued tables page to access historical data in the older format.

E: Table C8 – Sectoral analysis of funding (Registered Banks)

An earlier version of the C8 table, extracted from the M3 SSR, was discontinued as at the end of November 2004. A new C8, based on improved classification and sectorization of the accounts was introduced and is equivalent to the data presented in Part D of the new aggregate registered bank SSR. Please see the discontinued tables page to access historical data in the older format.

F: Tables C9 & C10 – Securities repurchase agreements and Interest rates on New Zealand Dollar funding and claims

Tables C9 and C10 continue to be based on the same definitions, however the coverage has changed from the named institutions comprising the M3 SSR survey group to the aggregate values for registered banks.

September 2004: Total household claims (registered banks and NBLIs)

The September 2004 Household claims data release incorporates fully-backdated household borrowing data from four new respondents in the ‘non-M3’ category. These are Australian Mortgage Securities (NZ) Limited, Interstar Securities NZ, Kookmin Bank and St George Bank New Zealand Limited. This increase in survey coverage has brought table C6 housing loan coverage to between 95 and 98 percent.

December 2003: Tables C1 and C3 – Monetary aggregates and components of monetary aggregates

Data for M1 has been revised from July 2000, following the receipt of backdated information. The change is due to the incorrect classification of new cheque product data as ‘Other call’ by a survey respondent. The impact of the revision is to increase the level of M1, offset by a reduction in the ‘Other call’ products in M2. The reallocation has no impact on the level of M2.

May 2002: Redefinition of tables

A: Table C1 – Monetary aggregates

Series previously presented in the C6 table on M3 and M3R, excluding repos have been moved to the C1 table. There is a break in the ex-repo series between May and June 1997. Prior to that date ex-repo data were not provided. The break is smaller than for non-resident data, and the extent of it can be gauged by reference to table C9, which provides repo data.

B: Table C2 – Credit aggregates

Domestic credit, which consists of the claims of M3 institutions on central government and the private sector, is now presented first, simply reversing the order of the previous presentation. ‘Ex-repo’ series for private sector credit, both including and excluding non-residents, have been moved from the C6 table into C2. PSC(R) excluding repos is classified as ‘credit’ to better align the concept to the Reserve Bank of Australia for its equivalent series. Of the several aggregate credit series central banks routinely calculate, we think this one is the best ‘starting point’ for thinking about credit in a macro-economic context in New Zealand.

A new series, ‘securitization adjustment’, has been added to the C2 table. This heading was subsequently changed to ‘series break adjustment’ . This figure represents the net ‘running total’ of levels differences introduced to the credit series by securitisation of residential mortgages since March 1998. Removing and adding mortgage portfolios to the balance sheet via securitisation can create series breaks. Using off-balance sheet information on the value of securitisation, we are able to calculate the growth rate of credit and have chosen to make the method transparent and the means available to others who may wish to compute rates of change of credit on alternative bases. It is important that users realise that the levels in the securitisation adjustment series cannot be added to credit to obtain ‘total credit’. They are simply a device to enable the calculation of ‘like-for-like’ rates of change of credit, notwithstanding the existence of series breaks (whether or not caused by securitisation).

An important element of the private sector credit series is the fact that it has been compiled so that it represents around 95% of all private sector credit revealed in annual census surveys conducted by the Bank (partly for the purpose of monitoring this coverage). The same coverage of funding is achieved, and accordingly, to the extent it is possible, the credit and monetary series exhibit a minimum of bias introduced by the changing composition of the funding and lending market for deposit-taking financial institutions.

C: Table C3 – Monetary and credit aggregates components

The purpose of this table is to reveal the logic of the money and credit constructs in C1 and C2. For completeness we have added the four ‘ex-repo’ series. A new feature of these tables for the Excel historical series only is introduced here: data series that had previously read horizontally are now presented in columns, to standardise formats for users.

D: Table C4 – Balance Sheet: M3 Institutions

Changes to this table are the addition of two new ‘memo item’ columns that total non-resident funding and claims. The foreign and domestic currency components of these items remain available but it is no longer necessary separately to compute the totals by residency.

E: Table C5 – Sectoral resident ex-repo credit aggregates

This table replaces the ‘old’ C5, ‘New Zealand dollar and foreign currency funding and claims outstanding: M3 institutions’. The series from the former C5 are available in C4 (currency distinction) and C3 and C9 (inter-institutional claims).

Credit in New Zealand can be divided most easily and reliably into three main sectors: households, agriculture and business. For some time we have been able to provide a monthly series of household claims from 1990, comprising mainly household claims of banks (M3 institutions), supplemented by the household claims of several smaller institutions. This series provides monthly coverage of around 95% of the total household claims obtained from an annual census survey of lending institutions, and from estimates of non-institutional lending sources. The series has previously been presented as C10.

Lending to agriculture (almost entirely farmers, but with a very minor ‘agriculture services’ component) is one of the ‘industry sector’ breakdowns obtained from the SSR and presented, with other industry sectors, in the former table C9. From June 1998 the series has been better measured than it was earlier in the decade, and recent work suggests that it comprises around 95% of all lending to agriculture, excluding family loans. Earlier in the decade there were a number of breaks in the agriculture claims series and some data quality issues.

Work has been undertaken to restate monthly data in earlier years, and to compile a more comprehensive series for farm lending, including the claims of smaller lenders no longer included in the backdated credit series since June 1998. As a result, C5 now presents a monthly agriculture lending series on the same compilation principle as the household claims series. Prior to June 1998, the agriculture series is different from that previously published in C9, but from June 1998 it is the same as that published in (the former) table C9 (now C7). From December 1990 to May 1998 inclusive the major component of the C5 agriculture series are from institutions included in the M3 institution credit series. However, the C5 series, having been revised and including other institutions’ data, is not be the same as that which can be found in data originally published in C9 (the discrepancy is never more than 4%).

With the establishment of consistent agriculture and household claims data series as monthly components of credit (PSCRex-repo), the residual becomes business (including finance) credit. The most volatile of the three sectors, business credit is often compiled by means of a residual method by central banks. C5 introduces two new business credit series. The first is a long-run ‘business including ex-repo finance’ from 1990 to date: there is a break in this series between May and June 1997, just as there is for the PSCR ex-repo series. From June 1998, C5 separates the finance sector from the ‘business’ aggregate, to show both ex-repo series. From 1998, improved measurement practices have enabled the ‘finance’ component of business credit to be better identified. ‘Finance’ includes the insurance category. It is probable that there remain some problems of consistency among the finance and business series from month to month, but the financial industry and the bank are working continuously to improve data reliability.

F: Table C6 – Total household claims

The former C6, ‘Securities repurchase agreements: M3 institutions’ becomes C9, with modifications

The former C10, Household claims is re-presented here, with the addition of the computation of net monthly changes in the series, annual percentage change calculations, and seasonally adjusted levels and monthly percentages changes for the total household claims series.

G: Table C7 – Sectoral analysis of outstanding New Zealand dollar claims: M3 institutions

The existing C7, ‘Interest rates of New Zealand dollar funding and claims’ becomes C10.

This table is the former C9, simply renumbered. The historical Excel workbook presents the data in three separate tabs broken into sections that reflect the original data composition and definitions at the time it was collected.

H: Table C9 – Security repurchase agreements: M3 institutions

This table is the former C6 and retains the repo and reverse repo series data.

I: Table C10 – Interest rates of New Zealand dollar funding and claims: M3 institutions

This table is the former C7, without change.

J: Series descriptions and background note format change

The new series descriptions and background notes for the new formats are appended to this note. From 3pm Friday 31 May 2002 they will appear as do the existing ones, accessible by a ‘button’ at the head of each ‘C’ table.

April 2001 – Discontinuation of C0 table and weekly money and credit aggregates

The Reserve Bank has discontinued the collection of data from M3 institutions for the purpose of constructing weekly monetary and credit aggregates (M1, M3 and PSC). The last set of published weekly data relates to 28 March 2001. Weekly aggregate data have been published by the bank since 1991. The objective of these aggregate series has been to provide information on money and credit on a more timely basis than was possible with the core monthly series, and for analytical purposes with data at a higher frequency than monthly.

The Bank’s monthly monetary and credit aggregate series are more comprehensive, providing M1, M3, M3R (resident M3), PSC, PSCR , including and excluding repos. It has been concluded that reporting costs for the Bank and respondents for the weekly series outweigh any analytical benefits available. This decision is in line with that taken by the Reserve Bank of Australia, which ceased collection of weekly data in June 2000.

The historical weekly series will remain available on the Bank’s website.

June 1998 – Revisions to sectoral analysis tables C7 and C8

These tables classify New Zealand dollar funding and claims by industrial, household and non-resident sectors. The Australia and New Zealand Standard Industry Classification (ANZSIC) coding system is used for industry sectors. Financial institutions use the ANZSIC code appropriate to their depositors and borrowers to allocate funding and claims shown in these tables. The ANZSIC code describes the principal activity of customers.

During 1996 and 1997 several major M3 institutions, and many smaller ones, completed information system projects that improved their technical capacity to code customers. Also, major efforts have been made to allocate codes to customer records. As a result, it has been necessary to accept several discontinuities in these tables, with backdating often not possible in 1996. Series disruption has been minimised by backdating 1997 claims and funding revisions to December 1996. These series breaks are explained below.

From June 1998, foreign currency funding and claims were no longer collected by ANZSIC code. This has created a further discontinuity in these tables. At the same time, improvements to data recording by several institutions affected several industry sectors, notably the reported level of household claims, a category also affected in a very minor way by the removal of foreign currency loans. Discontinuities caused by reclassification are regretted but are implemented in order to provide more accurate data.

A: Table C7 – Claims analysis

There are discontinuities in the table, most evident in the December quarter 1996. Implicit annual growth rates of sectors in table C7 therefore need to be treated with caution between December 1995 and December 1997. Rates of growth for total household sector claims however are relatively unaffected, subject to the note below. The total for gross claims is not affected.

Allocation of total household claims between the ‘Household - housing’ and ‘Household - other’ series has altered prior to December 1996, and again between May and June 1998. Furthermore, from March 1998, securitisation of residential mortgages has had an impact on the household sector. All the household claims breaks in table C7 are overcome in C5 and C6.

B: Table C8 – Funding analysis

Substantial revisions were made to Household funding data in this table during calendar 1995 and 1996, resulting in several discontinuities in this series. There are discontinuities in the Household funding series for March 1995, and at various dates in 1996. For ease of comparison across time, the rate of growth of household funding in calendar years 1995 and 1996 is estimated to have been 9 percent in both years. Note that the revision to the survey population in 1998 resulted in $1.8 billion of household funding being removed from the survey at June 1998.

C: Table C10 – Interest rates

The weighted average interest rates of NZ dollar funding and claims of M3 institutions are on a monthly basis from June 1998.

June 1998 – Household claims

The most easily accessible and frequently published household claims series in New Zealand until June 1998 was the ‘household’ segment of table C7, which categorises gross lending by industrial sector, and includes the household sector as well. The introduction of a reduced survey for the purposes of compiling monetary and credit aggregates from June 1998 reduced the coverage of household lending, which has significance for monetary policy. Therefore a new survey designed to collect household claims data was introduced. The new ‘Household Claims’ series published here in tables C5 and C6 incorporates the household claims data from table C7. For data from December 1990 to May 1998, it incorporates revisions not made to C7, and breaks in the data series arising from institutional reclassification. From June 1998, C7 data as published is complemented by similar data from a group of household lenders not included in the monetary aggregates, and household claims managed under securitisation and capital market funding programmes.

The coverage of household claims has been increased by the new series, but it is not comprehensive. For example, it does not include loans to households from credit unions, life insurance companies, smaller financial institutions formerly included in table C7 that are now not in the household claims series (less than $400 million), and direct lending, such as that through solicitors’ nominee companies. It is estimated that close to 95% of institutional household claims, (not including student loans), is captured by this series. June Bulletins for the years 2000 to 2003 have carried an article reviewing household financial assets and liabilities (among other credit series). Comprehensive household loan data on an annual basis since 1979 is available in an Excel workbook.

The series ‘Household Claims’ will be revised from time to time as a result of reporting improvements at respondent institutions, institutional changes such as mergers, and the introduction of new respondents. Where possible, data will be backdated. Where backdated figures are not available, the series will be ‘spliced’ to retain a data series that can be used to illustrate longer-term trends in household lending. Significant efforts are made to monitor data month by month so that the net monthly movement in the series may be of use to financial markets. The distinction between ‘housing’ and ‘other’ cannot be made for data prior to June 1998 on a monthly basis. However, there is a quarterly average series for table C6.

April 1994

All sectoral analyses contain foreign currency funding/claims. See table below. All series: break in April 1994. See explanatory table below.

Series breaks in Table C8 and Aggregate Summary CCSSR part D1

from June 1990 to March 1994	From April 1994 to May 1998	June 1998 onwards
Sectoral analysis of combined NZ dollar and foreign currency funding		NZ dollar funding only
1 Agriculture, Hunting, Forestry & Fishing	1 Agriculture	D1.1 Agriculture
	2 Forestry	D1.2 Forestry
	3 Fishing	D1.3 Fishing
2 Mining	4 Mining	D1.4 Mining
3 Manufacturing	5 Food manufacturing	D1.5 Food manufacturing
	6 Textiles & clothing manufacturing	D1.6 Textiles & clothing manufacturing
	7 Wood and paper manufacturing	D1.7 Wood and paper manufacturing
	8 Other manufacturing	D1.8 Other manufacturing
4 Electricity, Gas and Water	9 Electricity, Gas and Water	D1.9 Electricity, Gas and Water
5 Building and Construction	10 Building and Construction	D1.10 Building and Construction
6 Wholesale and Retail Trade & Restaurants & Hotels	11 Wholesale trade	D1.11 Wholesale trade
	12 Retail trade	D1.12 Retail trade
	13 Accommodation and restaurants	D1.13 Accommodation and restaurants
7 Transport, Storage & Communication	14 Transport and storage	D1.14 Transport and storage
	15 Communications	D1.15 Communications
8 Financing, Insurance, Real Estate & Business Services	16 Finance	D1.16 Finance
	17 Insurance	D1.18 Insurance
	18 Property and business services	D1.19 Property and business services
10 Government administration and defence	19 Government admin. and defence	D1.20 Government admin. and defence
9 Community, Social & Personal Services	20 Education	D1.21 Education
	21 Health and community services	D1.22 Health and community services
	22 Culture and recreation	D1.23 Culture and recreation
	23 Personal services	D1.24 Personal services
11 Households	24 Households	D1.27 Households
12 Non-residents	25 Non-residents	D1.28 Non-residents
13 Unallocated	26 Unallocated	D1.29 Unallocated
14 Total Funding	27 Total Funding	D1.30 Total Funding