Series Description for the Standard Statistical Return (SSR)
Part A: Balance Sheet Information | | Part B: Analysis of Funding | | Part C: Analysis of Claims | | Part D: Sectoral Analysis | | Industrial Classification | | List of Local Authorities and Regional Councils | | Examples of government departments | | Examples of State-owned enterprises | | Examples of Crown Entities | | Part E: Residential Loan Analysis |
For all of the return, respondents use book or market values as determined by their accounting policies and exclude contingent items. Data is provided according to accounting policies that meet the terms of the Financial Reporting Act 1993.
In Part A and elsewhere the return asks for values to be recorded according to the client's residency. For the purpose of this return “resident in New Zealand” has the same meaning as that used in current New Zealand income tax practice, where that has been actioned by the respondent institution with a non-resident withholding tax (NRWT) ‘flag’ to identify relevant customers. The tax definition is used for convenience - it is not ideal for monetary policy data. The ideal relates to the location of the customer, to accord with international conventions used for balance of payments and other cross-border data collection purposes. Therefore, entities that are clearly located overseas, (but are classed as New Zealand residents for tax purposes), are treated as non-residents if their transactions are usually separately identified by the respondent’s systems as ‘non-resident’. Companies incorporated in New Zealand are regarded as New Zealand residents.
All deposits and loans that are denominated in New Zealand dollars are considered to be New Zealand dollar funding. New Zealand dollar funding includes funds received from the Reserve Bank. Contingent liabilities arising from bill acceptances made on behalf of clients are excluded, as well as bills the reporting institution has issued but has subsequently bought back and not re-issued.
Deposits from Government Departments only are required. Deposits from SOEs or ad hoc government bodies are not included. The total A2.3 is included in D1.20. Refer below for a list of Government Departments and a list of SOEs, with the two digit ANZSIC code for the Part D sectoral classifications in which they belong.
For reporting purposes, foreign currency funding and claims items are normally converted into New Zealand dollars at the “mid-rates”, or similar rate used by the respondent, applying at the end of the month. An exception would be an arrangement in which a foreign currency loan or deposit will be repaid at a pre-arranged exchange rate. In such a case this pre-set exchange rate should be used.
For registered banks, included under this heading are paid-in capital, retained earnings, reserves and provisions, or any other items commonly disclosed as equity under New Zealand reporting practices adopted for published accounts. For registered banks that are New Zealand branches, the balance is reported on head office account. For other institutions, the total equity is reported.
Using the definition of subordinated debt applied by the Reserve Bank for Disclosure Statements (but not the manner of accounting for it) the value as presented by the institution according to accepted accounting practice used for public accounts is provided as a memo item. If this debt is treated as funding and not capital in those accounts, a note is provided in the template.
‘Normal’ accounting practice for financial institutions is used to allocate relevant items here. ‘Statistical discrepancies’ indicates that roundings and other minor data mismatches can be allocated here - up to $10m.
This category is intended principally for synthetic instrument market values.
An associate of the reporting institution is any organisation that has substantially the same shareholders as the reporting institution, or any organisation (or individual) that holds 20 percent or more of the reporting institution's paid-up capital, or any organisation in which the reporting institution holds 20 percent or more in paid-up capital. When calculating financial claims on associates share capitals are excluded.
These items are only weekly requirements, not monthly. The definitions for them correspond as follows: A7.1 = B3.1, A7.2 = B4.1, A7.3 = B3.2.
SOE or Housing Corporation of New Zealand securities are not included. That part (if any) of the portfolio that is valued at historic cost according to the institution’s accounting policies, and trading stock marked to market values, are aggregated in the one number.
Notes and coin.
Balances with the Reserve Bank are included here.
Claims are all loans and an institution's deposits with other institutions. They include bill acceptances on balance sheet (requirements for including bills are set out in Part C, at CC2-6.1). Claims are recorded gross of provisions for doubtful debts, which are ‘subtracted out’ of the balance sheet in item A14.5. Claims include sellbacks (repos) and other agreements which are similar to collateralised loans (see BB2.3-4.3 for definition). Claims include net deposits made in connection with futures contracts. Claims also include the net of payments made and receipts received on options contracts. If, however, receipts exceed payments the net amount is included in funding.
Most claims are book value, but clearly certain categories must be market-valued in accordance with generally-accepted accounting practice.
Normally offshore asset values in branch offices or for ownership of subsidiaries.
Only ordinary capital, mandatory convertible and non-redeemable preference shares are recorded. Also included are trade shares and trade investments. Shares convertible to cash or with a cash option are classified under New Zealand dollar claims. Shares held for short-term trading and those held as long-term investments are included.
See definitions for other liabilities.
A14.4 Include both general and specific provisions in this category.
The total for this category (B3.11) equals A1.5. Funding is classified as retail or wholesale (B1 and B2) according to institutions’ own criteria, but must ensure the classification is consistent over time. The concept of ‘time to run’ is to the next rate reset, or expiry of the contractual term of the funding, whichever is first. Where no contractual expiry is specified but the funds are not at call, allocations are to the time at which first notice of repayment may be made.
The sum of B1 and B2, which in every maturity category is the total for New Zealand funding.
All cheque account balances.
The total balances of all product accounts from which customers can make EFTPOS payments (not the balances only of the customers who have elected to do so, but balances where they have the opportunity). Cheque accounts are excluded to preclude double-counting.
Accounts not included in B3.1 and B3.2 that are on call.
The total here equals A1.5. The M3 component is required only for B4.1, transaction cheque and B4.3, other call, both of which are used in the calculation of M1 and M2.
While clearly M3 institutions are not using EFTPOS accounts with each other, this category is used for any electronic balances at call among them not included under cheque.
This category totals to A1.3 and is not mutually exclusive of B1-4.
The totals for B6-8 should equal those for A2.1-3.
The total B9.4 equals A1.3. For B10.4, the correspondence is A3.2.
The following data represents an alternative way of analysing selected funding data.
The definition is per deposit, not per customer.
The data here comes from respondents’ Treasury systems. This data does not in this case have to correlate exactly to totals in Part A. In all cases (BB4, BB7 and BB10), ‘Associates’ is a column that is not exclusive of those which precede it, but can comprise both NZD and foreign currency. All category rows are mutually exclusive.
Any shorter term paper that is negotiable (e.g. bills of exchange) or registered (RCD) should be reported here. However, bonds, which are also negotiable, should not be here, but in BB2.2-4.2.
Included here are what institutions consider to be bonds. Generally, bonds are expected to be for a medium or longer term, with a coupon, but may also be ‘deep discount’ securities without a coupon.
The definition here includes only those categories of ‘repo’ that involve separate sale and purchase agreements, commonly but not necessarily under an ISDA Master Agreement. Ordinary stock lending, and similar transactions for a fee, are not sought here. Only transactions which alter balance sheet totals under generally-accepted accounting practice are required. Buybacks from Part A are entered here. A1.2 is the same as BB2.3, A1.4 is the same as BB3.3. Repos with associates, BB4.3, are the same as reported as a component of memo item A7, and are not larger than that.
A deposit is a ‘capital stable’, non-negotiable liability to a customer.
This category is not expected to be more than 10 percent of the total.
The financial institution definition is based on the ANZSIC code that is used to categorise industry sectors in Part D. A list of specific institutions regarded by Statistics New Zealand as ‘financial institutions’ is available further down.
For this section only, this item is specified as being required on a settlement basis. Data under this heading has not yet been required.
This section requests claims in NZD classified by time to run to rate reset. Revolving credit is expected to appear as call or ‘on demand’ lending, unless internal systems are set for some alternative, such as legal notice. Columns C1 to C3 are mutually exclusive.
These are sorted by time to rate reset, which for conventional bonds is also the ‘time to run’ concept. Index-linked bonds are included in the ‘90 days less than 1 year’ bucket. The weighted average interest rate is provided on the same basis as for NZD claims in Part D, which it is expected will be an ‘as at’ rate at the last working day of the month, for the total portfolio. It is assumed that part of this portfolio may be valued at purchase yield and part at market rates, in accordance with the respondent’s application of generally-accepted accounting practice.
This category mimics the NZD requirements and is completed on the same basis.
As for non-resident funding, this section breaks down non-resident claims by broad sector on which the claim is made. For NZD claims, the total C9.4 equals A10.5, and C10.4 equals A11.2.
As for funding, ‘treasury’ means from treasury systems. ‘Non-treasury’ means everything else, so that CC6.8 provides a total for NZD claims that is the same as A10.7. It is expected that claims captured on ‘treasury systems’ will be reported as ‘treasury claims’. For example, a large corporate placement on behalf of a ‘corporate division’ will be a ‘treasury claim’, even though it is a ‘corporate product’.
‘Personal housing’ revolving credit is expected to comprise personal loans secured on housing of the ‘overdraft’ type. These loans must be able to be redrawn from a cheque account.
Overdrafts that correspond to the ‘household - other’ claims description in Part D.
‘All other’ means all other overdrafts/revolving credit excluding credit cards, and will presumably be mainly business (including farming) lending.
Personal housing term loans are the common home mortgage instrument. The definition of ‘personal’ should be ‘tied back’, as for overdrafts, to the Part D ‘housing - claims’ definition used. Consequently, the total of CC1.1 and CC1.4 cannot exceed, and may equal, D2.25.
Personal non-housing term loans - same definition as for the previous Part H section of the NZBA return.
All other term lending not personal and not from Treasury systems.
Business card outstandings are intended to relate to cards marketed as ‘company’ cards, with special features for companies that assist with employee record-keeping.
Personal credit card outstandings are entered here.
Only minor balances are reported here under ‘non-treasury claims’.
A residual non-treasury claims category, which is very small.
Included here is the value of mortgage-backed paper, or other form of financing (short-term paper, or loans, for example), for residential housing loans secured on mortgage. Shown here is the value of paper that may have been bought in portfolio by institutions’ Treasury that ‘supports’ housing lending (eg, SABRE paper where it is known the program is for housing, or MBS No.1, etc paper). This paper is currently, reported in Part D claims under ‘D2.16 Finance – excl M3 claims’. We pick up the housing loan totals this paper represents from the issuer and publish it in table C10. We need to know what proportion of this paper is held by the banking system. This category will be implemented over the period to end-2001.
The principle is the same here as for housing paper above. In New Zealand, such asset-backed paper includes that issued under the commercial paper programs of RFS and Pacific Retail, for example. The paper should remain reported in Part D as ‘finance’, but we need to know how much of the totals are purchased by the banking system. Implementation as for CC1.11.
This is just a useful memo device that adds the two main fields for housing products above, to help with comparisons of this total with that returned in Parts D and E.
These three categories are added in a memo item to facilitate comparison with the total for ‘household – other’ in Part D.
Totals here will come from ‘treasury source systems’ - if such a system holds a ‘commercial placement’, it is ‘treasury’, not ‘non-treasury’. Columns CC2-5 must add to CC6, while CC7 is non-additive. It is expected that treasury claims will usually be either on ‘financial institutions’ or on ‘corporates’ (CC4). The ‘other’ category is provided to allow an ‘option’ for claims categories that an institution may feel don’t fit the main groups, and where they can be identified with existing data systems. Only small amounts are expected here.
The most common asset in this class is now the RCD, NCD, TCD instrument, which is what is expected to be returned here. In addition, include commercial bills. For commercial bills there is a need to ensure those that were bought in the market, and are not drawn on an M3 institution, are not reported as being on an M3 institution just because that is the acceptor (i.e. the concept of ‘bank paper’ must not override the idea of which original entity has the credit). The following section covers commercial bills to help with this.
Bill of exchange definitions (for the purpose of this return only)
- ‘Commercial bill’ - a bill of exchange.
- ‘Commercial bank bill’ - a commercial bill which has been accepted by a bank, not drawn on a bank or M3 institution.
- ‘Own bank bill’ - a bill of exchange drawn by a bank for its own funding purposes.
How to report commercial bills (Cbills):
- Cbills on balance sheet are private sector claims. Most treasury software packages include fields for the drawer, acceptor and seller or issuer. For Cbills on balance sheet, the drawer field should ideally have room for the customer ANZSIC number or a device to link it, so that Part D industry sector classifications can be made.
- When classifying whether a Cbill is a claim on an M3 institution or not, it is necessary to ensure that commercial bank bills are properly classified by drawer. If the drawer is not an M3 institution, the bill must not be reported to the Reserve Bank as a claim on an M3 institution (as would occur if the acceptance were used).
- For own bank bills, those in portfolio that are drawn on another M3 institution are a claim on an M3 institution and must be reported as ‘M3’(CC2.1).
- Own bank bills a bank has drawn on itself and holds in portfolio are not a claim.
Short-term paper so described in ordinary market terms.
Corporate paper, tending to be medium to long-term, with a coupon, to distinguish it from promissory notes.
This category corresponds to those in Part A. CC2.4 is the same as A10.1 and the total of CC3.4, CC4.4 and CC5.4 corresponds to A10.4. CC7.4 equals A10.6.
Definitions that were current with your institution for this category in the former Part H are used, unless any of the newer categories are now more appropriate. This is not a ‘residual’ category, and does not include any of the CC2-7 classes listed 1-4.
This total should equal A10.7, with the same commercial bill treatment to be applied to both categories.
As for BB8-10, on a settlement basis, not yet implemented.
D1 is a sectoral breakdown of A1.5, NZD funding, and D2 is the same for A10.7, NZD claims. The sectors are defined by the ANZSIC code. The sectors defined here represent a two digit classification, with the addition of household and non-resident sectors (not in the ANZSIC code). The full code, with extensive guidance on the classification, is contained in a book published jointly by Statistics NZ and its Australian counterpart, with the New Zealand Catalogue No.19.005.0092. The ANZSIC code listing below has been modified slightly to meet the economic needs of the Bank, and the few changes are shown in bold.
The ANZSIC code is allocated to firms on the basis of the activity in which a majority of full-time equivalent employees are engaged. It is the activity of the customer, not purpose of the loan, that drives classification. For example, a company whose principal business is timber milling, but has a trucking division and borrows to buy trucks, should still have the truck loan entered against its timber milling ANZSIC number, 2311, because this is a customer classification.
These rows are labelled ‘finance’, and as the ANZSIC code explains, are applicable to deposits from, and loans to, ‘financial institutions’. Included here are all resident repos and reverse repos. Since Part D was introduced, banks have interpreted ‘finance’ to mean any negotiable security which represents a claim on any entity, not just a loan to a ‘financial institution’. From 2000, the Reserve Bank will seek to have this category sorted according to the ANZSIC code of the customer, which has always been its intention. On the funding side, Treasury information systems track names of original purchasers of securities issued (they report this for M3 institutions currently, for example). For claims, there are credit control and other systems focussed on aggregating and reporting daily on securities held (claims), by named issuer, to which an ANZSIC code can be allocated. In 1999, perhaps 20% of all resident business finance (excluding farms) from M3 institutions was provided by purchase of securities, returned inappropriately in the ‘finance’ category. We will begin to discuss procedures for better reporting in this category in 2000.
The problem arises because many firms use short-term paper as part of their financing, with banks buying the paper. For example, a bank buying the paper of a large firm in the energy sector should have this credit coded to the ‘electricity, gas and water’ sector (D2.9), but currently such borrowing is usually allocated to ‘finance’. Changes in sectoral financing requirements cannot be meaningfully assessed unless the paper held in portfolio by banks is allocated to the correct sector.
Paper bought that represents a secondary claim on the household sector. As noted under CC1.11 and CC1.12, banks buy paper such as mortgage backed securities and short-term asset-backed paper for consumer durables issued by other primary lenders. We do not want this paper classified in D2.25 or D2.26, but want it to remain in Finance, along with loans to and claims on financial institutions not part of M3 (there are examples of these in Part D help, under ANZSIC codes). We already survey the primary lenders and so would double-count if we took this paper out of finance. That is not the case with commercial paper.
Summary of ‘Household - housing’ classification for Part D
Classification is by customer:
- all residential mortgage loans to personal customers are housing;
- unless they are explicitly entered as ‘household - other’ in the information system; or
- unless the respondent’s information system is able to allocate one loan secured on a residential mortgage to the customer’s house, and another, known to be ‘in the business’, to the business, by correct ANZSIC number.
- loans to ANZSIC-numbered customers (secured on residential mortgage) appear in the relevant ANZSIC category, not as ‘household - housing’.
- ‘lifestyle’ loans on farmlets are classified housing or farming according to the BIS category used by the respondent.
This category includes loans, whether or not secured by mortgage, which have been separately identified as being for personal customers, but are not housing – e.g. boat or car purchase, travel etc., and all credit card lending.
See Part A definition. These totals are the same as A1.3 for funding and A10.5 for claims.
The objective clearly is to minimise this category, but it is used to allocate values where the correct category is not known. Current reported levels of aggregate unallocated balances are perfectly acceptable.
This category requires an ‘as at’ rate at the end of month.
The left-hand number below relates to the cell reference numbered in Part D, 1 to 24. The three-digit code is from ANZSIC.
011 Horticulture and fruit growing
012 Grain, sheep and beef cattle farming
013 Dairy cattle farming
014 Poultry farming
015 Other livestock farming
016 Other crop growing
- Services to Agriculture, Hunting and
021 Services to agriculture - eg, wool classing, aerial topdressing, not fruit or vegetable packing that belongs in wholesale trade
022 Hunting and trapping
03 Forestry and logging
041 Marine fishing
- Oil and gas extraction
120 Oil and gas extraction
- Metal ore mining
131 Metal ore mining
- Other mining
141 Construction material mining
142 Other mining
- Services to
152 Other mining services
211 Meat and meat product manufacturing
212 Dairy product manufacturing
213 Fruit and vegetable processing
214 Oil and fat manufacturing
215 Flour mill and cereal food manufacturing
216 Bakery product manufacturing
217 Other food manufacturing
218 Beverage and malt manufacturing
219 Tobacco product manufacturing
221 Textile fibre, yarn and woven fabric manufacturing
222 Textile product manufacturing
223 Knitting mills
224 Clothing manufacturing
225 Footwear manufacturing
226 Leather and leather product manufacturing
- Log sawmilling and timber dressing
232 Other wood product manufacturing
233 Paper and paper product manufacturing
- Printing, publishing and recorded media
241 Printing and services to printing
243 Recorded media manufacturing and publishing
- Petroleum, coal, chemical and associated product
251 Petroleum refining
252 Petroleum and coal product manufacturing n.e.c
253 Basic chemical manufacturing
254 Other chemical product manufacturing
255 Rubber product manufacturing
256 Plastic product manufacturing
- Non-metallic mineral product
261 Glass and glass product manufacturing
262 Ceramic product manufacturing
263 Cement, lime, plaster and concrete product manufacturing
264 Non-metallic mineral product manufacturing n.e.c
- Metal product manufacturing
271 Iron and steel manufacturing
272 Basic non-ferrous metal manufacturing
273 Non-ferrous basic metal product manufacturing
274 Structural metal product manufacturing
275 Sheet metal product manufacturing
276 Fabricated metal product manufacturing
- Machinery and equipment
281 Motor vehicle and part manufacturing
282 Other transport equipment manufacturing
283 Photographic and scientific equipment manufacturing
284 Electronic equipment manufacturing
285 Electrical equipment and appliance manufacturing
286 Industrial machinery and equipment manufacturing
- Other Manufacturing
291 Prefabricated building manufacturing
292 Furniture manufacturing
294 Other manufacturing
- Electricity and gas supply
361 Electricity supply
362 Gas supply
- Water supply, sewerage and drainage
370 Water supply, sewerage and drainage services
- General construction
411 Building construction
412 Non-building construction
- Construction trade services
421 Site preparation services
422 Building structure services
423 Installation trade services
424 Building completion services
425 Other construction services
- Basic material wholesaling
451 Farm produce wholesaling - include all producer boards
452 Mineral, metal and chemical wholesaling - includes petroleum product wholesaling
453 Builders supplies wholesaling
- Machinery and motor vehicle
461 Machinery and equipment wholesaling
462 Motor vehicle wholesaling
- Personal and household good
471 Food, drink and tobacco wholesaling
472 Textile, clothing and footwear wholesaling
473 Household good wholesaling
479 Other wholesaling
- Food retailing
511 Supermarket and grocery stores
512 Specialised food retailing
- Personal and household good
521 Department stores
522 Clothing and soft good retailing
523 Furniture, houseware and appliance retailing
524 Recreational good retailing
525 Other personal and household good retailing
526 Household equipment repair services
- Motor vehicle retailing services
531 Motor vehicle retailing
532 Motor vehicle services
- Accommodation, cafes and
572 Pubs, taverns and bars
573 Cafes and restaurants
574 Clubs (hospitality)
- Road transport
611 Road transport
612 Road passenger transport
- Rail transport
620 Rail transport
- Water transport
630 Water transport
- Air and space transport
640 Air and space transport
- Other transport
650 Other transport
- Services to transport
661 Services to road transport
662 Services to water transport
663 Services to air transport
664 Other services to transport
711 Postal and courier services
712 Telecommunication services
731 Central bank
732 Deposit taking financiers
733 Other financiers - incl stock and station agents, stockbrokers, merchant and investment banks
734 Financial asset investors - include loans to/deposits from lease companies where the lease purposes are diverse, but if the company simply leases cars, trucks or planes for example, include it under transport. However do include companies that fund asset backed receivables to the household sector here. Financial asset investors include investors in Government bonds (repos as well), and other securities.
75 Services to finance
751 Services to finance and investment
741 Life Insurance and superannuation funds
742 Other insurance
- Services to insurance
752 services to insurance
- Property services
771 Property operators and developers
772 Real estate agents - trust funds are here
773 Non-financial asset investors – i.e. intangibles like intellectual property, or a tangible like artwork
774 Machinery and Equipment hiring and leasing - this is the official ANZSIC code place for units leasing cars etc, but we do not want leasing companies in here, but in the sector relating to where they lease. In other words, we want you to 'look behind' the lease company to the sector it is supporting.
- Business services
781 Scientific research
782 Technical services
783 Computer services
784 Legal and accounting services - associated trust funds would be here
785 Marketing and business management services
786 Other business services
811 Government administration
813 Foreign government representation
841 Preschool education
842 School education
843 Post school education
844 Other education
- Health services
861 Hospitals and nursing homes
862 Medical and dental services
863 Other health services
864 Veterinary services
- Community services
871 Child care services
872 Community care services
- Motion picture, radio and television services
911 Film and video services
912 Radio and television services
- Libraries, museums and the
923 Parks and gardens
925 Services to the arts
- Sport and
932 Gambling services
933 Other recreation services
- Other services
962 Interest groups – e.g. npos, clubs and so on, like 'associations' of any interest groups.
963 Public order and safety services – e.g. fire, waste disposal, prisons.
- private households employing
970 Private households employing staff
ANZSIC code D1.20 for funding, D2.20 for claims
Banks Peninsula District
Central Hawkes Bay District
Central Otago District
Far North District
Kapiti Coast District
Matamata Piako District
New Plymouth District
North Shore City
Palmerston North City
Queenstown Lakes District
Sth Taranaki District
Sth Waikato District
Sth Wairarapa District
Thames Coromandel District
Upper Hutt City
Western Bay Of Plenty District
Total Territorial Authorities
Bay of Plenty
- Ministry of Agriculture
Ministry of Civil Defence
Department of Conservation
Ministry of Consumer Affairs
Department of Corrections
Department for Courts
Crown Law Office
Ministry of Cultural Affairs
New Zealand Customs Service
Ministry of Defence
The New Zealand Defence Force
Ministry of Economic Development
Ministry of Education
Education Review Office
Ministry for the Environment
Ministry of Fisheries
Ministry of Foreign Affairs and Trade
Ministry of Forestry
Government Communications Security Bureau (GCSB)
Government Superannuation Fund
Ministry of Health
Ministry of Housing
Inland Revenue Department
Department of Internal Affairs
Ministry of Justice
Department of Labour
Land Information New Zealand
Ministry of Maori Development
National Library of New Zealand
Ministry of Pacific Island Affairs
New Zealand Police
Department of the Prime Minister and Cabinet
Ministry of Research, Science and Technology
New Zealand Security Intelligence Service (SIS)
Serious Fraud Office
Department of Social Welfare
State Services Commission
Statistics New Zealand
Department of Survey and Land Information
Ministry of Transport
Office of Treaty Settlements
Valuation New Zealand
Ministry of Woman's Affairs
Ministry of Youth Affairs
- Airport companies
74 Accident Rehabilitation and Compensation Insurance Corporation
77 Housing New Zealand Limited
78 Crown research institutes
81 Housing Corporation of New Zealand
84 Tertiary education institutions
School boards of trustees
86 Crown health enterprises (including Residual Health anagement Unit)
Regional health authorities
2 Museum of New Zealand Te Papa Tongarewa
96 New Zealand Fire Service Commission
Part E of the registered bank Standard Statistical Return (SSR) presents summary results on the value of residential housing loans, and the interest rates paid on those loans.
These results are in two parts:
Sections E3 to E6 present results for housing loans that are on the balance sheet of registered banks.
Sections E7 to E10 present results for housing loans that have been initiated by registered banks but are off their balance sheet.
In practice, the results presented as ‘off balance sheet’ are loans made (and continue to be managed) by banks, which have been on-sold to their associated funds management operations. These loans are a relatively immaterial part of bank lending for housing; as at September 2012 $176.9b of loans are recorded as ‘on balance sheet’ compared to $215m recorded as ‘off balance sheet’.
Note that bank disclosure statements (DS) also refer to ‘off balance sheet loans’. However, in disclosure statements ‘off balance sheet’ refers to future lending commitments – loans that have been approved and are awaiting drawdown by the borrower. Summary RBNZ statistics on housing loan approvals are available here.
These sections record the number (#) of housing loans currently managed by banks.
If a borrower chooses to split their loan into separate portions (part fixed, part floating) this will appear twice; once in ‘floating’ and once in ‘fixed’. However, if a loan is split into two or more portions that are all fixed for different terms, this loan will only appear once as a ‘fixed’ loan.
These sections record the value (in $m) of all residential housing loans currently outstanding to registered banks. The total value of loans reported in these sections are broken down by time remaining to interest rate-reset.
An example of time remaining to interest rate-reset would be as follows: the line “E4.4 1 < 2 year” includes the value of a loan which just last week was fixed for 2 years, and also includes the value of a loan which, three years ago, was fixed for five years.
These sections record the actual interest rate paid by borrowers for residential home loans, and include the impact of all specials, discounts, and other interest rate charges paid by the borrower.
Each interest rate in section E5 corresponds to the same line reported in section E4 (this is also the case for rates in E9, with values in E8). For example, the value of all residential housing loans on floating interest rates is recorded in ‘E4.1 Floating’ and the interest rate paid on those floating loans is recorded in “E5.1 Floating”.
Line “E5.10 Total All” is the weighted average interest rate paid on all residential mortgages. It is commonly referred to as the ‘effective mortgage rate’.
The interest rates recorded here are simple averages of the advertised or ‘carded’ interest rates banks offer to new borrowers for first-ranking residential home loans. Any special rates or discounts offered to borrowers are excluded from the results presented in sections E6 and E10.
Banks report to the RBNZ their standard rate on offer for each of the required terms (e.g. floating interest rate, six-month fixed rate, and so on to their five-year fixed rate). Some banks offer standard rates at other terms (e.g. 18-month fixed rate, seven-year fixed rate) but these are not requested by the RBNZ in this report.