Publishing new banking sector statistics

This month, the Reserve Bank will be making more data available to all users on our website, sourced from existing surveys of registered banks.

This data will add to the wide range of information already available to support analysis of the New Zealand financial system. We will continue to add further series in the coming months, in addition to reshaping the way we present data to make it easier to find and use.

We will publish the following new statistical time series:

1. Banks: Assets – Loans by business size (S35) will break business lending down into small, medium and large.
2. Banks: Assets – Loans by asset quality (S50) will show non-performing loans and expected credit losses by sector, including housing and business.
3. Costs on deposits (B7) will express bank interest expenses as a percentage of deposits.

We will also expand the breakdowns available in the following web tables:

1. Residential mortgage lending by debt-to-income (DTI) purpose use (C40), to include investor borrower types and higher total Debt to Income (DTI) bands.
2. Banks: Income statement (S21), to include ‘occupancy expenses’ – such as building costs for owned and leased/rented property – as a separate line.

Further details on each of these publications is available on our website.

If you have any queries or comments, or ideas for data that you would find useful, please contact us at [email protected]

Banks: Assets - Loans by business size (S35)

We collect monthly lending data in the bank balance sheet survey, broken down by business size into:

1. Corporate business (large / institutional)
2. Corporate business (medium)
3. Retail business (small)

This data is a rich source of information. In particular, the data on the Small and Medium Enterprise (SME) sector of the New Zealand economy provides insights on the important role SMEs play in the economic activity of New Zealand.

The new S35 table will be a breakdown of registered banks “Business loans” currently published in the S31 table and C5 table. Annual growth rates for SME loans and large loans will also be published. These growth rates will be break adjusted for known breaks in the data.

Banks: Assets – Loans by purpose (S31)

Registered banks and non-bank lending institutions: Sector lending (C5)

Publication date: 30 November 2021, including October 2021 month data Frequency: Monthly

Time series from: December 2016

Please see Table 1 (below) for an outline of the loans by business size publication.

Banks: Assets – Loans by asset quality (S50)

We collect monthly asset quality data in the bank balance sheet survey. This data shows non- performing loans and provisions across the banking system:

• Non-performing loans (NPL) are loans that are recognised as impaired or where payment is at least 90 days past due. The NPL ratio is total non-performing loans as a proportion of total loans.
• Individual provisions are an allowance for expected credit impairment loss on individual loans. Collective provisions are an allowance for anticipated credit impairment loss from groups of similar loans.

Currently, quarterly asset quality data is available for individual banks on the Bank Financial Strength Dashboard, but no system-wide aggregates are published.

Bank Financial Strength Dashboard

The new S50 table will show asset quality data broken down into main lending activities. It will show high level trends for stress experienced by banking customers across the housing, business, consumer, and agriculture lending books.

Publication date: 30 November 2021, including October 2021 month data Frequency: Monthly

Time series from: March 2018.

Please see Table 2 (below) for an outline of the loans by asset quality publication.

Costs on deposits (B7)

We collect interest expense paid by registered banks, and the values of their deposits, on a monthly basis through the banks income statement survey. The new table B7 will express interest as a percentage of the values of deposits to create a ‘costs on deposits’ series.

We currently publish yields on loans in Table B6, which is interest income earned by banks as a percentage of their loans. The new table will complement the existing B6 table.

Yields on loans (B6)

Publication date: 7 December 2021, including October 2021 month data Frequency: Monthly

Time series from: January 2017.

Expand DTI statistics in Table C40

In the next debt-to-income publication we will expand the range of data available to include a more granular breakdown of the Total Debt to Income (TDTI) ratio ranges and expanded borrower types.

In the C40, we break new mortgage commitments down into TDTI bands by borrower type and include ‘first home buyers’ and ‘other owner-occupiers without investment property collateral’. We will be expanding our publication to include two new borrower types:

• Other owner-occupiers with investment property collateral
• Investors.

In addition, we will be publishing more data for each of these borrower groups. Total debt to income data is currently published with an upper limit of TDTI>6. We will be expanding this to include:

• 6 < TDTI <= 7
• TDTI>7
• TDTI>8 (for borrower types other than first home buyers)

An example of the ranges can be seen in Table 3. The historical excel file will also be expanded in our next publication to include a number of new additional data breakdowns.

Publication date: 15 November 2021, including September 2021 month data Frequency: Monthly data, published quarterly

New time series from: October 2018.

Expand bank expense breakdown in Table S21

We will expand the breakdown of “other operating expenses” currently published in the table S21 Banks: Income Statement. The table will include a new line displaying “occupancy expense”.

Occupancy expenses include building costs for owned and leased/rented property such as bank branches and head offices. This covers:

• lease costs, rent and depreciation, and fit-out costs if material
• other costs associated with physical premises, such as rates, repairs and maintenance, power (including fuel), and building insurance.

Publication date: 25 November 2021, including September 2021 quarter data Frequency: Quarterly

Time series from: September 2013.

Table 1: Loans by business size (S35) publication

Total business loans

Total Small & Medium Enterprise (SME) loans

Total Large (L) business loans

Total Small (S) business loans

• Small (S) business loans - Total commercial property
• Small (S) business loans - Investment property
• Small (S) business loans - Property development - commercial
• Small (S) business loans - Property development - residential
• Small (S) business loans - Other business
  

Total Medium (M) business loans

• Medium (M) business loans - Total commercial property
• Medium (M) business loans - Investment property
• Medium (M) business loans - Property development - commercial
• Medium (M) business loans - Property development - residential
• Medium (M) business loans - Other business

Total Large (L) business loans Large (L) business loans - Total commercial property

• Large (L) business loans - Other business Annual growth rate (%)
• Annual growth rate - SME loans
• Annual growth rate - Large business loans

Table 2: Asset Quality (S50) publication

Total loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Housing loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Personal Consumer loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Business loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Commercial property loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Other business loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Agriculture loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Dairy loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Other agriculture loans ($m)

• Total
• Impaired loans
• Loans 90 days past due but not impaired
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

All other loans ($m)

• Total
• Total non-performing loans
• Non-performing loans ratio (%)
• Individual provisions
• Collective provisions

Table 3: Debt to income (C40) publication

Total new commitments ($m)

• Total
• TDTI unknown

New commitments to first home buyers ($m)

• TDTI <= 3
• 3 < TDTI <= 4
• 4 < TDTI <= 5
• 5 < TDTI <= 6
• 6 < TDTI <= 7
• TDTI > 7 (excl. unknown)
• Unknown

New commitments to other owner occupiers without investment property collateral ($m)

• TDTI <= 3
• 3 < TDTI <= 4
• 4 < TDTI <= 5
• 5 < TDTI <= 6
• 6 < TDTI <= 7
• 7 < TDTI <= 8
• 8 < TDTI <= 9
• TDTI > 9 (excl. unknown)
• Unknown

New commitments to other owner occupiers with investment property collateral ($m)

• TDTI <= 3
• 3 < TDTI <= 4
• 4 < TDTI <= 5
• 5 < TDTI <= 6
• 6 < TDTI <= 7
• 7 < TDTI <= 8
• 8 < TDTI <= 9
• TDTI > 9 (excl. unknown)
• Unknown

New commitments to investors ($m)

• TDTI <= 3
• 3 < TDTI <= 4
• 4 < TDTI <= 5
• 5 < TDTI <= 6
• 6 < TDTI <= 7
• 7 < TDTI <= 8
• 8 < TDTI <= 9
• TDTI > 9 (excl. unknown)
• Unknown