Household balance sheet ($m) - C22

Released
14 March 2018 03:00 p.m.
Next release
01 June 2018 03:00 p.m.
Source
Reserve Bank of New Zealand, Statistics New Zealand, CoreLogic, Inland Revenue
Periodicity
Quarterly
Previous years: Quarterly:
Dec 2015 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017
FINANCIAL ASSETS
Household financial assets 801,331 839,955 847,893 851,801 857,909 870,027
Currency
Currency 3,360 3,421 3,320 3,349 3,424 3,728
Deposits
Deposits 148,666 158,903 161,006 163,961 166,171 170,115
of which registered banks 145,423 155,776 157,819 160,707 162,922 166,836
Securities other than shares
Securities other than shares 5,090 5,165 4,749 4,673 4,566 3,928
Loans (assets)
Loans 340 290 290 290 290 290
Equity and investment fund shares
Equity 507,347 524,136 527,240 526,847 527,123 527,753
of which NZ unlisted shares1 85,092 73,916 71,342 71,342 71,342 71,342
of which equity in unincorporated NZ businesses1 304,962 323,823 326,680 326,680 326,680 326,680
Investment fund shares 54,103 60,133 60,579 61,080 61,831 66,483
Insurance technical reserves
Net equity in life insurance and superannuation funds 76,138 82,421 85,402 86,868 90,071 93,189
FINANCIAL LIABILITIES
Household financial liabilities 180,112 194,908 198,636 201,696 204,180 207,814
Loans (liabilities)
Consumer loans (short- term) 14,627 15,279 15,315 15,582 15,867 16,535
Housing loans (long-term) 150,737 164,436 167,515 170,379 172,578 175,544
of which registered banks 148,995 162,459 165,431 168,172 170,283 173,130
Student loans1 14,748 15,192 15,806 15,735 15,735 15,735
Net financial wealth
Net financial wealth 621,219 645,048 649,256 650,105 653,729 662,213
Non-financial assets
Housing and land value2 652,977 758,156 770,947 779,833 786,392 -
Net wealth
Net wealth 1,274,196 1,403,204 1,420,203 1,429,938 1,440,122 -
  1. Where annual data are not timely an annual figure has been estimated and is held constant for the most recent quarters
  2. Excludes vacant land

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Data is published in millions of New Zealand dollars.

The Household Balance Sheet statistics comprises the assets and liabilities of New Zealand's household sectorThe household balance sheet is compiled from a number of different sources. See the series description for a detailed explanation of data sources.

In March 2015, significant improvements were made to these statistics. These improvements address the most significant coverage gaps in the previously published statistics. For more information, please read the background paper. Other smaller gaps exist and methods can be improved. 

Areas for improvement include:

  • Improving quarterly estimates for business equity for recent periods by identifying a reliable quarterly indicator
  • Producing a consolidated household and unincorporated business balance sheet to aid international comparison
  • Estimating household assets held overseas (e.g. deposits with overseas banks, superannuation funds with overseas government, properties in other countries)

Statistics New Zealand began publishing sectoral balance sheets on 31 March 2017 (Statistics New Zealand’s Annual Balance Sheets), including annual estimates of the household balance sheet for the period from 2007 to 2015.

The Reserve Bank has published quarterly estimates of the household balance sheet for many years and is continuing to produce these estimates to assist with the macro-financial analysis of the household sector. These estimates are produced with a one quarter lag.

In compiling its own quarterly estimates, the Reserve Bank draws on Statistics New Zealand’s annual estimates to help ensure consistency between the two sources.

Periodicity

Quarterly

Timeliness

Released approximately three months after the reference quarter.

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 is 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

New data, or revised data, is in bold font. This applies to the summary table only and not excel files. Revisions are generally published when a table is next due to be updated and released. Should revisions need to be made more promptly, a special note is published.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

This data was first compiled and published in the June 2000 issue of the Reserve Bank Bulletin. Information about data sources and the evolution of financial markets and institutional structure from the 1970s to 2000 relevant to household financial asset and liability data is available in that and subsequent June Bulletin articles to 2003.

Household financial assets

Currency

Notes and coins issued by the Reserve Bank that are in the hands of the household sector.

 

Data is Reserve Bank estimates.

Reserve Bank currency in circulation, less the holdings of currency by banks and savings institutions, less an estimate derived from annual reports for the currency holdings of casinos and supermarkets. Two thirds of the residual is allocated to the household sector.

Deposits with registered banks

Household deposits  held with New Zealand registered banks.

Data is sourced from the Registered banks’ balance sheet statistics (table S41).

Deposits with non-bank deposit takers

Household deposits held with non-bank deposit takers.

 

Data is sourced from the Non-bank lending institutions’ balance sheet statistics (table T4).

 

Central government securities

Central government securities held by households, mostly Kiwibonds.

 

Data is sourced from New Zealand registries and the Debt Management Office.

Local government securities

Local authority securities held by households such as city council, district council, harbour board and electric power board securities.

 

Data is Reserve Bank estimates based on registry data..

Other securities

Other securities held by households such as retail or corporate bonds.

 

Data is Reserve Bank estimates based on registry data.

Loans

Loans made by households through contributory mortgage companies and solicitors’ nominee companies.

 

Data is Reserve Bank estimates based on data from the New Zealand Law Society.

NZ listed shares

Direct holdings by households of shares listed on the New Zealand Stock Exchange (NZX).

Data for March quarters from 2007 are Statistics New Zealand estimates from the Annual Balance Sheet statistics. The latest March year estimate is derived using the annual growth in NZ listed shares from the Reserve Bank Managed Funds survey.

Data for March quarters prior to 2007 are provisional Reserve Bank estimates and will be subject to change when Statistics ew Zealand backdates the Annual Balance Sheets statistics.

Data for non-March quarters is a linear interpolation between March year benchmarks. For quarters after the last annual benchmark the figure is held constant and is subject to revisions when new annual benchmarks become available.

NZ unlisted shares

Household holdings of shares in businesses that are not listed on the New Zealand Stock Exchange (NZX)

Estimates are book-value.

Data for March quarters from 2007 are Statistics New Zealand estimates from the Annual Balance Sheet statistics. The latest March year estimate is derived using the annual growth in NZ listed shares from the Reserve Bank Managed Funds survey.

Data for March quarters prior to 2007 are provisional Reserve Bank estimates and will be subject to change when Statistics ew Zealand backdates the Annual Balance Sheets statistics.

Data for non-March quarters is a linear interpolation between March year benchmarks. For quarters after the last annual benchmark the figure is held constant and is subject to revisions when new annual benchmarks become available.

Equity in unincorporated NZ businesses

Household equity held in unincorporated businesses. Unincorporated businesses include sole traders, partnerships and trusts. In New Zealand the most significant of these are non-corporate farms and rental properties.

Estimates are book-value (except rental properties which are market value).

 

Data for March quarters from 2007 are Statistics NZ estimates from the Annual Balance Sheets statistics. The latest March year estimate is derived using the change in household sector entrepreneurial and property income received as recorded in the household income and outlay account.

Data for March quarters prior to 2007 are provisional Reserve Bank estimates and will be subject to change when Statistics New Zealand backdates the Annual Balance Sheets statistics.

Data for other quarters is a  linear interpolation between March year benchmarks. For quarters after the latest annual benchmark the figure is held constant and is subject to revisions when new annual bechmarks become available. 

 

Overseas listed shares

Direct holdings by households of shares listed on overseas stock exchanges.

 

From 1998 to 2001, data is Reserve Bank estimates based on a survey in the June 1985 Reserve Bank Bulletin of direct equity investment in Australia.

From 2002 to 2004, data is Statistics New Zealand experimental survey results.

From 2005, data is Reserve Bank estimates using the Australian ‘All Ords’ index and the Morgan Stanley Capital Index (MSCI), adjusted for currency movements.

Cash management trusts

Household investment in cash management trusts (excluding banks PIEs). Cash management trusts are money market funds (MMF) that typically invest in money market instruments with a maturity of less than one year only.

Data is sourced from the Managed funds statistics.

Other investment fund shares

Household investments in retail unit trusts (excluding bank PIEs), wholesale trusts, mortgage income trusts, and property syndication. Also includes private wealth funds with fund managers.

Prior to June 2014, other investment fund shares also include cash management trusts.

Data is sourced from the Managed funds statistics.

Net equity in life insurance reserves

Household investments in life insurance funds.

Data is sourced from the Managed funds statistics.

Net equity in superannuation funds

Household investments in KiwiSaver, and other superannuation funds.

Also includes estimate for unfunded superannuation (superannuation entitlements not covered in full by the amounts that are held in superannuation funds).

Does not include the New Zealand Superannuation Fund.

Data is sourced from the Managed funds statistics and Reserve Bank estimates of unfunded superannuation of the Government Superannuation Fund (GSF) and the National Provident Fund.

Non-life insurance claims

Non-life insurance claims and prepayments of insurance.

Data is Statistics New Zealand estimates from the Annual Balance Sheets statistics.

Reliable estimates are not available prior to 2007.

Financial liabilities

Consumer loans: with registered banks

Consumer loans with New Zealand registered banks.

 

Data is sourced from the Registered banks’ balance sheet statistics (table C5).

Consumer loans: with non-bank lending institutions

Consumer loans with non-bank lending institutions.

Data is sourced from the Non-bank lending institutions’ balance sheet statistics (table T4).

Other consumer loans

Other consumer loans.

Data is sourced from the Managed funds statistics and Reserve Bank estimates.

Housing loans: with registered banks

Owner-occupier housing loans with New Zealand registered banks. Excludes housing loans for rental properties.

Data is sourced from the Registered banks’ balance sheet statistics (table S31).

 

Housing loans: with non-bank lending institutions

Housing loans with non-bank lending institutions.

Data is sourced from the Non-bank lending institutions’ balance sheet statistics (table T4).

Other housing loans

Other housing loans including Housing New Zealand Corporation loans, solicitors’ loans and managed funds loans.

Data is sourced from Housing New Zealand, Managed Funds statistics and Reserve Bank estimates.

Student loans

Student loans obtained through the Student Loan Scheme.

Estimates for 2001 are total balances outstanding, less provisions.

For 2002 and 2003, estimates are total loans outstanding (including interest).

From 1998 to 2003, data is sourced from Crown Financial Statements.

From 2004, data for June quarters is sourced from the Student Loan Scheme Annual Reports. Data for other quarters is sourced from Student Loan Quarterly Reports.

Other

Household net financial wealth

Household financial assets less total household financial liabilities.

 

Housing and land

The value of housing and land excluding rental properties and vacant land. 

Rental properties are notional unincorporated businesses and the assets and liabilities appear on the business sector balance sheet. 

Data is Statistics New Zealand estimates from the Annual Balance sheets statistics.

Household net wealth

Household net financial wealth plus the value of housing and land.

 

Net equity in housing

The value of housing and land less the value of housing loans.

 

Household disposable income

Household disposable income (gross disposable income plus interest)

Data for March quarters is Statistics New Zealand estimates from the household income and outlay account. The latest March year estimate is using the growth earnings over the quarter, published in Statistics New Zealand’s Quarterly Employment Survey.

Data for other quarters is Reserve Bank estimates interpolated between March year benchmarks.

Revisions will occur when new annual benchmarks become available..

Number of households and number of private dwellings

Estimated number of households and private dwellings in New Zealand.

Statistics New Zealand Dwelling and Household Estimates.

Gross domestic product

Gross domestic product (GDP) represents the country’s income earned from production in New Zealand. It includes income from production carried out by New Zealanders and by foreign firms operating within New Zealand.

Statistics New Zealand Gross Domestic Product

Updated Household Balance Sheet tables

Correction

Today the Reserve Bank published household balance sheet statistics with corrections to some series.

The following series are impacted:

  • Total household financial assets
  • Net wealth aggregates
  • Ratios

As part of the publication process, changes due to investment fund shares (discussed below) were not added correctly to total assets, net financial wealth, net wealth and derived ratios including household assets.

We apologise for any inconvenience.

14 March 2018

Change to Household Balance Sheet

Revisions

Today the Reserve Bank published household balance sheet statistics with revisions to some series.

The main changes are to the following series:

  • Equity in unincorporated New Zealand businesses
  • New Zealand unlisted shares
  • Investment fund shares

Timely estimates are available for the majority of the asset and liability items covered in the household balance sheet. However, Stats NZ produces estimates of household holdings of equity in unincorporated businesses, unlisted shares and investment fund shares annually. This data is not as timely as other data used in the household balance sheet. Therefore estimates for latest quarters are derived using historical growth rates and when new annual data becomes available, revisions will occur.

The latest available annual estimates are incorporated in today’s release and result in significant revisions to the household sector holdings of equity. The link below contains an explanation of the Statistics New Zealand balance sheet changes

https://www.stats.govt.nz/reports/2016-annual-balance-sheets-improvements-preview

Net Financial Wealth

The main change to Net Financial Wealth is an increase from June 2015 going forward by around $9 – $34 billion.  This is due to revisions in the series mentioned above and is described in more detail below.

Change in net financial wealth

Equity held by households is challenging to measure accurately. Stats NZ are confronting a number of data sources and have revised the 2007 to 2015 annual estimates. We are now incorporating their improved annual estimates. In addition we are also incorporating Stats NZ’s provisional results for 2016. These data are likely to be revised again in future as Stats NZ continues to improve their data confrontation for all institutional sectors.

RBNZ derives quarterly estimates from the annual Stats NZ benchmarks. In the absence of quarterly indicators linear interpolation is used. In the absence of benchmarks the Reserve Banks derives quarterly estimates by using annual indicators and linear interpolation, or holds the latest annual estimate constant. See Series description for information about the series source and methodology.

Equity in unincorporated New Zealand businesses

The main change to this series is an increase in equity in unincorporated businesses from June 2015 to September 2017 by around $30 - $80 billion. This is due to revisions to our estimates going forward after receiving revised 2007 - 2016 annual estimates from Statistics New Zealand around $11 - $20 billion.

Equity in unincorporated NZ businesses

New Zealand unlisted shares

The main change to this series is a decrease in unlisted shares from June 2015 to September 2017 by around $20 - $45 billion. This is due to revisions to our estimates going forward after receiving revised 2007 - 2016 annual estimates from Statistics New Zealand of up to $15 billion.

NZ unlisted shares

Investment fund shares

The main change to this series is an increase in investment fund shares from June 2014 to September 2017 by around $5 billion.

Investment fund shares

2 March 2018

Symbols and conventions for summary table

0 Zero or value rounded to zero
- 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.