Credit card balances - C12

Released
21 November 2017 03:00 p.m.
Next release
20 December 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Total advances outstanding Weighted average interest rate on personal interest bearing advances Weighted average interest rate effective on all personal advances
Date ($m) (Y/Y% s.a.) (M/M% s.a.) (%) (%)1
Previous years:
Oct 2015 6,459 2.8 -0.8 18.2 11.5
Oct 2016 6,603 2.0 0.5 18.0 11.4
Monthly:
Nov 2016 6,731 1.6 0.2 18.0 11.3
Dec 2016 6,890 2.8 1.0 17.9 11.2
Jan 2017 6,763 2.9 0.4 17.9 11.4
Feb 2017 6,831 3.2 0.4 17.8 11.3
Mar 2017 6,738 3.2 0.1 17.8 11.4
Apr 2017 6,787 3.7 0.4 17.8 11.3
May 2017 6,812 4.0 0.2 18.0 11.4
Jun 2017 6,786 4.7 0.4 17.8 11.2
Jul 2017 6,754 4.7 0.5 17.8 11.3
Aug 2017 6,784 5.4 0.6 17.7 11.2
Sep 2017 6,853 5.1 0.5 17.7 11.1
Oct 2017 6,965 5.2 0.6 - -
  1. This rate takes into account both the interest-bearing and non-interest bearing parts of credit advanced.

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Data is sourced from the Credit Card Survey. The survey covers credit and charge cards.

The survey defines credit and charge cards as those that can be used to make purchases and obtain credit at all merchants accepting branded credit and charge cards in New Zealand and overseas. It is different from a store card with brand logos (e.g. GEcreditline, Qcard, Farmers Card), which can only be used at a limited number of merchants. Store cards are not in scope of the survey.

A credit card enables a cardholder to access a revolving credit facility. The cardholder can use the card to make transactions up to a pre-arranged limit.

A charge card enables a cardholder to access a non-revolving credit facility. Charge cards often do not have an explicit credit limit.

Data are published in millions of New Zealand dollars. The data are both daily averages and ‘as at’ the last day of the month, with interest rate information on both bases.

Data series begin January 1981. Credit card statistics: balances outstanding (table C12) advances outstanding, credit limits, overdue 90 days, deposit balances and interest rates.

Year on year changes are based not on the actual total $m but a monthly series corrected for seasonality and trading day effects.

Periodicity

Monthly

Timeliness

Fifteen working days following the end of the reference month.

Access by the public

Statistics release calendar

The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

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 Act).

The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data is 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, or revised data, are in bold font. This applies to the summary table only and not excel files. Revisions are generally published when the table is next due to be updated and released. Should revisions need to be made more promptly, a note is posted on the website as a ‘special note’.

Any major changes in methodology are posted on the website as a special note.

Quality

Dissemination of statistics that support statistical cross-checks and provide assurance of reasonableness

Selected credit card information is published for registered banks in S32.

Seasonal adjustment

Most data series collected in the credit card survey are affected by seasonal factors, for example national holidays and festivities, the timing of school holidays, and the number of trading days in the month. The existence of such seasonality makes month-to-month comparisons difficult. Seasonal adjustment is the process of estimating and removing the usual seasonal effects from a time series in order to reveal the underlying non-seasonal features.

The Reserve Bank seasonally adjusts data in the credit card survey using X12-ARIMA.

Seasonal adjustment practices

  • A pre-defined adjustment model chosen on statistical merit is used for each series.
  • An adjustment is run on the entire series as each new observation becomes available (concurrent seasonal adjustment method)
  • Where a series is an aggregation of multiple series, if justified, its seasonally adjusted values are taken as the sum of each separately adjusted sub-series (indirect adjustment)
  • Where seasonality is not significant, the seasonally adjusted series is set equal to the actual values over the indicated time span.
  • Each adjustment model is reviewed annually

Adjustment models used

(1) Amounts financed on cards used in New Zealand (Domestic cards)

Transformation: Log form

(a) Dec-1993 to Dec-2000:
ARIMA (2,1,0)(0,1,1)12
Regression variables: Constant term, trading day and Easter
X11 multiplicative model, seasonal 5-term and Henderson 13 term MA

(b) Jan-2001 onwards:
ARIMA (0,1,2)(0,1,1)12
Regression variables: Constant term, trading day and Easter; additive outlier Dec 2001, transitory change Feb 2008
X11 multiplicative model, seasonal 5 & 7 terms and Henderson 15 term MA

(2) Amounts financed on cards used in New Zealand (Overseas cards)

Transformation: Log form
ARIMA (2,1,2)(0,1,1)12
Regression variables: Constant term, trading day, additive outliers (Oct-1998, Sep-2003, Sep-Nov 2011), transitory changes (Sep-2003, Jun-2005)
X11 multiplicative model, seasonal 5-term and Henderson 13 term MA

(3) Amounts financed on cards issued in New Zealand (Overseas billings)

Transformation: Log form
ARIMA (0,1,1)(0,1,1)12
Regression variables: Constant term, trading day, additive outlier (Jul-1997, Sep-Oct 2011)
X11 multiplicative model, seasonal 7-term and Henderson 15 term MA

(4) Amounts financed on cards used in New Zealand (Total billings in New Zealand) as per (1) and (2) above

(5) Amounts financed on cards issued in New Zealand (Total billings on NZ cards)

Transformation: Log form

(a) Jan-1981 to Nov-1993:
ARIMA (2,1,0)(0,1,1)12
Regression variables: Constant term, trading day, Easter, level shift (Mar-1981)
X11 multiplicative model, seasonal 7-term and Henderson 13-term MA

(b) Dec-1993 onwards, as per (1) and (3) above

(6) Deposit balances

Transformation: Log form
ARIMA (0,1,1)(0,1,1)12
Regression variables: constant term, trading day, additive outliers (Apr-2003, Feb-2008)
X11 multiplicative model, seasonal 5 & 7-term and Henderson 9-term MA

(7) Total advances outstanding

(a) Jan-1981 to Jan-1985:
No seasonality

(b) Feb-1985 to Jun-2001:
Transformation: Log form
ARIMA (2,1,2)(0,1,1)12
Regression variables: Constant term, additive outliers (Sep-1999, Jan-2001), transitory change Sep-1988, level shift Dec-2000
X11 multiplicative model, seasonal 7-term MA and Henderson 15-term MA

(c) Jul-2001 onwards:
Transformation: Log form
ARIMA (0,1,1)(0,1,1)12
Regression variables: constant term, trading day
X11 multiplicative model, seasonal 7-term MA and Henderson 9-term MA

(8) Personal interest-bearing advances outstanding (data based on daily average balances for the month)

Transformation: Log form
ARIMA (2,1,2)(0,1,1)12
X11 multiplicative model, seasonal 5 & 7-term and Henderson 13 term MA

(9) Personal non-interest-bearing advances outstanding (data based on daily average balances for the month)

(a) Jul-2000 to Dec-2005:
No seasonality

(b) Jan-2006 onwards:
Transformation: Log form
ARIMA (0,1,1)(1,0,0)12
Regression variables: constant term, trading day, additive outliers (Feb-2008, Jan-2010)
X11 multiplicative model, seasonal 5 & 7-term MA and Henderson 13-term MA

(10) Total advances outstanding (data based on daily average balances for the month)

Summation of values from (8) and (9) above

Advances 90 days past due

This is the value of advances outstanding (or credit card debt) that is older than 90 days. This time series enables analysis of the ability or willingness of credit card users to repay debt.

Balances Outstanding

This is the amount of money, either on deposit for, or owed in total by, all credit card holders as at the end of each month. This includes both active and inactive accounts, but no closed accounts.

Credit Limits

This is the total value of all cardholders' credit limits at the end of the month for credit cards able to be used for spending (‘unblocked' cards). A credit limit is authorised by the issuer for total credit a customer may have outstanding on a card without being in breach of the agreement with the issuer. For some cards this will be zero.

Credit limit utilisation

Credit limit utilisation is calculated as the ratio of total advances outstanding (or credit card debt) to total allowable credit limits.

Personal card total advances outstanding

All borrowing outstanding on personal cards, calculated as a daily average for the month, is included here.

Personal card interest-bearing advances outstanding

Interest-bearing advances outstanding is the amount of credit outstanding on which interest is being charged to the customer, calculated as a daily average.

Personal card non-interest bearing advances outstanding

Non-interest-bearing advances outstanding is the amount of credit outstanding that does not have interest being charged to the customer, calculated as a daily average. This amount corresponds to the `free float' that exists as a result of the `interest free days' arrangements made by issuers for most cards. It is estimated using a formula agreed with issuers.

Simple average interest rate on personal `classic' cards

The interest rate charged on the standard, or `classic' card, usually the most commonly held, is reported as a simple average among the nine issuers with such cards.

Weighted average interest rate on personal interest-bearing balances

Where interest is being charged to the customer, the daily weighted average of such rates is reported here.

Weighted average interest rate effective on all personal balances

The calculation of this rate takes as denominator both the daily average balances of credit card balances paying interest and the `free float' on credit and charge cards, with revenue from interest payments as the numerator. The resulting interest rate is called the `effective' interest rate.

Amounts financed

These comprise spending by credit card holders and cash advances received during the month concerned, both on cards issued in New Zealand and issued overseas. `Billings' means spending on a card, or `amounts financed' - the monthly flow of total card debits (excluding interest), either by direct purchase or via cash advances. The rates of growth of billings are based on seasonally-adjusted data, which allows for trading day effects.

Total billings in New Zealand

This is the spending within New Zealand by holders of cards issued in New Zealand and overseas-issued cards.

Total billings on cards issued in New Zealand

This total adds New Zealanders' domestic card spending to their card spending overseas (billings overseas).

Roll-out of new Excel file format

On 22 November 2017 we will change the format of all current Excel from .xls to .xlsx.

A file with the XLS extension is a Microsoft Excel 97-2003 Worksheet file. Later versions of Excel save spreadsheet files in the XLSX format. This change in format is required as the XLS format is becoming obsolete.

Initially we will not change the format of the Excel files that are no longer current or updated, e.g. discontinued statistics. We will look to apply the format change to these files over the next few months.

We are not changing the presentation of the data in the Excel files.

If you have any questions please contact stats-info@rbnz.govt.nz.

15 November 2017

Symbols and conventions for summary table

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.