Supporting information:

Background notes - Discontinued series - Money and credit aggregates (Tables C5 - C6)

Discontinued tables

These notes are to be read in conjunction with the discontinued tables only. The underlying data that derived individual series reported in the C1 - C10 discontinued tables were collected under the criteria listed below. These notes were superseded from 31 January 2004.

Current tables

From January 2004 the background notes can be viewed on selection of a table in the current table index for Money, credit and financial statistics.

The Data: Coverage, Periodicity, and Timeliness
Coverage characteristics	Data are published as end of month figures in millions of New Zealand dollars and cover the Reserve Bank (where relevant in tables C1 to C3), and registered banks and other financial institutions defined as M3 institutions. The surveyed data are as at the last business day of the month. The principal time series begin at March 1988. Statistics wholly derived from the monthly M3 survey include monetary aggregates (table C1), credit aggregates (table C2) and a breakdown of their components (table C3). The aggregated balance sheets of M3 institutions are shown in table C4. Tables C5, C6 and C7 show various indicators of sectoral credit and lending to households. Prior to June 1998, C5 and C6 include household and agriculture data from sources outside the current standard statistical survey (SSR) of M3 institutions. For household claims, since June 1998 the SSR has been supplemented with data drawn from additional, non-M3 institutions and off-balance sheet mortgage portfolios. The industrial classification of funding sources of surveyed M3 institutions is shown in table C8. Table C9 shows the volume of repurchase agreements held by surveyed institutions. C10 provides an indication of the industry average NZ dollar cost of funding and claims. Monetary aggregates are Currency, M1, M2, M3, M3(R), and M3 and M3(R) excluding repurchase agreements. Credit aggregates are Private Sector Credit (PSC), Resident Private Sector Credit (PSC(R)), PSC and PSC(R) excluding repurchase agreements, Domestic Credit (DC) and Resident Domestic Credit (DC(R)). Growth in credit (PSCR ex-repo), adjusted for series breaks caused by securitisation, is shown in table C2. Balance sheet figures reported by the surveyed financial institutions conform to generally accepted accounting practice in New Zealand. In particular, values may be at book or `marked to market' according to appropriate practice for the instruments involved. The resident/non-resident distinction in these tables is based on the geographical location of respondents and counterpart transactions. To facilitate statistical reporting however, the New Zealand income tax rules on residency are accepted as an approximation.
Periodicity	Monthly
Timeliness	Released on or before the last business day of the month after the end of the reference month.
Access by the public
Advance release calendar	The "Advance Release Calendar" on the website is updated if necessary each Friday. This is a long-term plan of scheduled releases.
Simultaneous release to all interested parties	The full set of ten tables derived from the SSR, C1 to C10, is published on the Bank's website. All releases are made as close to 3pm as possible. The data are released on or before the last business day of the month following the reporting period
Integrity
Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses	Data are collected under Section 36 of The Reserve Bank of New Zealand Act 1989. The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data remain confidential.
Provision of information about revisions and advance notice of major changes in methodology	Provisional data are italicised. Data are deemed provisional when a series is under review. New data are in bold font in the latest release. Revisions are generally published when tables are updated and released and are marked in bold. Should revisions need to be made more promptly, a note is posted on the Internet website under "Revisions to Tables". A brief note, "Breaks in the Series", has been provided to outline breaks which affect series in these tables. The weekly monetary and credit aggregates (table C0) were discontinued in March 2001. An article on the most recent review of the monetary aggregates appeared in the June 1999 Bulletin, pages 5-23.
Quality
Dissemination of documentation on methodology and sources used in preparing statistics	The list of M3 Institutions providing data is reviewed annually. The list of the current Non-M3 institutions that provide additional data used in the Household claims tables C5 and C6 is also reviewed at the same time. Data from the ledger accounts of the Reserve Bank of New Zealand are used in tables C1 to C3. An Excel template is completed and returned each month by the M3 Institutions. This template incorporates an "Administration procedures" tab that specifies completion directions and a "Help" facility with data definitions for survey respondents. Changes to the way monetary and credit aggregates have been compiled since 30 June 1998 are explained in Financial Statistics, June 1998 Vol 1, No 2. From April 2002 the format of the C1 to C10 tables has been revised.
Dissemination of ... that support statistical cross-check and provide assurance of reasonableness	For an alternative breakdown of the money and credit aggregates see the "Aggregated M3 Standard Statistical Return" (SSR). The SSR is published monthly and is an aggregated version of the survey form that is completed by M3 institutions. Disclosure statements published by the M3 Institutions offer additional checks for reasonableness. Links to registered bank websites can be found in the NZ Banks section of this site.

Additional notes

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.

Special note for C7 table:

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.

Special note for C8 table:

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.

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 98% 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 (234KB).

The series `Household Claims' is 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 are backdated. Where backdated figures are not available, the series are `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. More detailed discussion of table C6, with an updated list of institutions it includes, may be found on the Bank's website.

Special note for C10 table:

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

A: List of M3 institutions included in published monetary aggregates

Reserve Bank of New Zealand

M3 institutions

ANZ National Bank Limited
ANZ Funds Management Limited (Bonus Bonds Unit Trust)
ASB Bank Limited
Bank of New Zealand
Citibank N.A, New Zealand Branch
Deutsche Bank AG, New Zealand
GE Finance and Insurance NZ Ltd
The Hong Kong and Shanghai Banking Corporation Limited
Rabobank New Zealand Limited and Rabobank Nederland
Southland Building Society
TSB Bank Limited
WestpacBanking Corporation

B: Non-M3 institutions in household claims series in tables C5 and C6:

American Express International (NZ) Incorporated
AMP Life
Australian Mortgage Securities (NZ) Limited
Diners Club (NZ) Limited
Ford Motor Credit Company of New Zealand Limited
Housing Corporation of New Zealand
Interstar Securities NZ
Kiwibank Limited
Kookmin Bank
Motor Trade Finances Limited
AXA New Zealand Limited
PSIS Limited
St George Bank New Zealand Limited
Southern Cross Building Society
Sovereign Financial Services Limited
Toyota Finance New Zealand Limited

For several of the entities above, the values reported represent the outstanding values of household loans securitised and held in pooled funds prior to securitisation.

Last updated 17 July 2006