Credit conditions - C60

14 July 2020 03:00 p.m.
Next release
23 October 2020 03:00 p.m.
Reserve Bank of New Zealand
Previous years: Half-yearly: Interim:
Sep 16 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Jun 20
Loan demand - observed change over the past six months (index)
Residential mortgage loans - - 10.4 6.1 2.8 1.3 8.3 -24.0
Consumer loans - - -2 0 -9.7 -6.9 -0.9 -35.7
Commercial property loans - - -0.2 -16.2 -6.2 -6.6 10.3 -30.9
SME business loans - - 1.8 -14.2 1.8 0.3 15.4 11.6
Corporate/institutional loans - - 3.3 3.4 11.6 -3.7 -2.5 35.3
Agriculture loans - - -3.7 - 0.4 -3.8 -4.6 -19.4 -12.0
Agriculture - Dairy farms - - -7.3 - 4.3 -9.7 -25.8 -33.4 -28.3
Agriculture - Sheep and beef farms - - -1.1 5.1 0.0 31.1 0.0 11.3
Agriculture - Other agriculture on farm - - 16.3 14.1 25.8 46.1 17.7 29.1
Loan demand - expected change over the next six months (index)
Residential mortgage loans - - 3.4 0.4 -0.3 -1.0 -9.6 -21.8
Consumer loans - - 0 0.4 0.0 -8.8 -5.2 -10.8
Commercial property loans - - 0 -15.4 -14.6 -15.4 -21.9 -55.6
SME business loans - - 1.8 2.4 1.8 0.0 -1.9 20.0
Corporate/institutional loans - - 12 0.7 -3.1 2.7 35.2 17.8
Agriculture loans - - -9.7 -4.4 -3.8 7.8 6.0 0.3
Agriculture - Dairy farms - - -17.1 -7.5 -9.7 8.3 0.0 -0.8
Agriculture - Sheep and beef farms - - 1.1 0 0.0 6.3 20.2 3.2
Agriculture - Other agriculture on farm - - 18.1 6.9 25.8 7.6 10.0 0.0
Credit availability - observed change over the past six months (index)
Residential mortgage loans - - -4.9 3.3 3.4 0.0 0.0 -8.7
Consumer loans - - -0.5 1.9 2.1 2.1 0.0 -11.9
Commercial property loans - - -5.9 10.5 -15.8 -28.7 -10.7 -38.4
SME business loans - - -0.3 0 -1.0 0.9 -12.4 -14.0
Corporate/institutional loans - - -16.7 17 -9.0 -22.1 -8.9 -32.2
Agriculture loans - - 7.4 -0.2 -6.7 -32.0 -22.3 -9.8
Credit availability - expected change over the next six months (index)
Residential mortgage loans - - 1.9 2.4 -8.7 -1.0 -15.8 -0.9
Consumer loans - - -4.5 2.3 0.0 -0.6 -5.2 3.2
Commercial property loans - - -17.8 -0.1 -15.3 -28.7 -16.2 -20.6
SME business loans - - 0 0 0.0 -13.0 -1.9 0.6
Corporate/institutional loans - - -32.4 -0.3 -36.2 -30.9 -8.9 -8.8
Agriculture loans - - 7.4 -11.5 -14.1 -36.4 -11.3 -9.8
Credit availability - relative to past three years (index)
Household lending - - -29.2 -13.1 -12.8 0.7 -0.2 -17.7
Commercial property lending - - -50.1 -39.2 -38.4 -62.0 -27.1 -60.4
SME business lending - - 2.3 -1.8 1.0 1.5 -10.5 -10.2
Corporate/institutional lending - - -18.8 14.6 -18.8 -37.3 -34.5 -60.0
Agriculture lending - - -46.7 -20.7 -38.4 -61.3 -70.6 -61.3
Factors affecting the availability of credit - over the past six months (index)
Cost of funds - - -2.5 -1.4 -0.7 0.1 9.3 -0.2
Balance sheet constraints - - 0.8 1.4 -1.2 -25.4 -9.8 9.1
Pressure from competition - - -4.4 10.3 9.3 -0.1 -0.5 0.7
Your bank's perception of risk - - -1.8 2.4 1.1 -15.7 1.5 -15.3
Your bank's risk tolerance - - -16.3 0 1.6 -25.5 0.0 -13.9
Regulatory changes - - -4.3 -8.5 12.1 -25.9 -25.1 9.5

The data: coverage, periodicity, and timeliness

Coverage characteristics

Data is sourced from the Reserve Bank’s Credit Conditions Survey.

The Credit Conditions Survey is a six-monthly survey of a selection of banks. The selection of banks excludes some smaller banks, but covers a significant portion of total bank lending.

Data starts in March 2018, when the Credit Conditions Survey was revised.


Backdata based on a previous version of the Credit Conditions Survey is available to provide long-run data. This backdata begins in June 2009. The first iteration of the survey was quarterly. However the survey was changed to being half-yearly after the first quarter.

Periodicity and timelines

Data is published every six months, near the end of the month following the reporting month. March survey results are published in late April and September survey results are published in late October.

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.

View the Statistics Release Calendar


Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

The information is disseminated by the Reserve Bank as a service to the public in a format that preserves the confidentiality of transactions. The function and operations of the Reserve Bank are governed by the Reserve Bank Act 1989.

The Reserve Bank publishes aggregated data. Individual institutional data is confidential.

Find out more about the Reserve Bank Act 1989

Provision of information about revisions and advance notice of major changes in methodology

Revisions are generally published when the table is next due to be updated and released.

Any major changes in methodology will be posted as a special note.


Dissemination of documentation on methodology and sources used in preparing statistics

A copy of the survey template and definitions is available from our Surveys page. Go to the Surveys page

Supporting material

The credit conditions survey is explained in the November 2018 Bulletin article: Introducing the Credit Conditions Survey. The survey template is also available on our surveys page

Key Concepts

Loan demand

Lender’s perceptions of households’ and businesses’ appetite for loans, regardless of whether or not those loans are actually granted.

Credit availability

Lenders’ willingness and ability to supply credit, holding credit demand constant. Credit availability may change due to non-price and price factors. Non-price factors may include banks’ lending standards, risk appetite, lending limits and non-price terms and conditions attached to loans, among other things. Price factors include banks’ interest markups, risk pricing, lending fees and inducements offered with loans.  Banks are asked to not count the direct impact of them passing through changes in benchmark interest rates and funding costs.

Lending types

Because of the qualitative nature of the survey, exact definitions of sectors are influenced by banks’ own internal processes and the judgements of respondents. The lending types may therefore not perfectly align with other Reserve Bank data.

Household lending

Loans to households for non-business purposes. This typically consists of:

  • Residential mortgage loans. This includes both lending for owner-occupier and investment purposes; and
  • Consumer loans. This includes lending for credit cards, as well as secured and unsecured personal loans.

Commercial property loans

Loans for the purpose of investing in or developing commercial property. Commercial property also includes larger-scale investment in and development of residential property.

Business loans

Loans to businesses that are not for commercial property or agriculture purposes. Business loans are split into ‘SME business loans’ and ‘Corporate/institutional loans’.  There is no strict threshold between these categories. Banks use their own internal definitions (such as their business unit boundaries) and judgements. As a guide:

  • 'Corporate/institutional’ business is likely to include:
    • Businesses with annual turnover exceeding $50m.
    • Businesses that typically require more sophisticated lending facilities.
    • Businesses with more than 20 employees.
    • Branches of non-resident corporate/institutional businesses.
  • 'SME' businesses is likely to include:
    • Businesses with annual turnover less than $50m.
    • Sole proprietorships and small partnerships.
    • Businesses with fewer than 20 employees.

Agriculture loans

Business loans to the agriculture industry. This includes loans for

  • Dairy farming
  • Sheep and beef farms
  • Other agriculture on farm (e.g. horticulture).

Drivers of changes in credit conditions

Cost of funds

The cost to banks of raising additional funds or replacing existing funding relative to the relevant interest rate benchmark. The direct impact of passing through changes in the cost of funding should be ignored. However, changes in the cost of funding may affect the availability of credit in other ways, such as by prompting changes in lending standards.

Balance sheet constraints

Balance sheet constraints refer to constraints arising from limited access to capital or debt funding (other than changes in the cost of those funds). Balance sheet constraints may stem from regulatory requirements (e.g. capital, liquidity and funding requirements) as well as internal balance sheet constraints (e.g. concentration limits). They may also stem from changes in the ability of a lender to subsequently transfer risk after writing a loan (e.g. via securitisation).

Perception of risk and risk tolerance

'Perception of risk' refers to a bank’s perception of actual risk. This may change due to developments in the general economy, industry-specific factors, firm-specific factors, and other changes in borrowers’ creditworthiness. By contrast, ‘risk tolerance’ refers to the levels of risk that a bank is willing to accept. This may alter due to changes in the bank’s underlying risk appetite and business strategy. A bank’s perception of actual risk and its risk tolerance may either change in line with each other or move in different directions.

Regulatory changes

Changes in regulation imposed by the Reserve Bank or any other New Zealand or overseas regulator.

Survey methodology

Qualitative response mapping

All published indicators from the Credit Conditions Survey are based on banks’ qualitative responses. Possible responses lie on a five-point scale, with each response assigned a score between -100 and 100. The qualitative response scales are provided below.

Table 1: Example response scales for the main question types

Loan demand (6-month horizon)


Increased significantly

Increased somewhat

Broadly unchanged

Decreased somewhat

Decreased significantly








Credit availability (6-month horizon)


Tightened significantly

Tightened somewhat

Broadly unchanged

Eased somewhat

Eased significantly








Credit availability (3-year horizon)






About normal

Somewhat easier

Significantly easier








Factors affecting the availability of credit (6-month horizon)


Contributed significantly to tightening

Contributed somewhat to tightening

About normal

Contributed somewhat to easing

Contributed significantly to easing







Index calculation

The Reserve Bank only publishes aggregate indicators from the CCS. The index values for the aggregate indicators represent the average response across banks, weighted by each bank’s market share. These lie between -100 and 100.  A positive index value indicates an increase in loan demand or credit availability (also referred to as an ‘easing’ of credit availability). Negative values indicate a reduction in demand or credit availability (or a ‘tightening’ of credit availability)

The market share information used is that for the relevant lending type – e.g. dairy loans or commercial property loans. Where granular market share data are not available for a specific type of lending, the market share for the next-highest level of disaggregation is used. The market share information is sourced from the RBNZ Bank Balance Sheet.

Combined indicator for agriculture loan demand

The survey has no questions on loan demand for the agriculture sector overall. To calculate these indicators the loan demand indicators for the three subsectors are averaged. The subsectors are:

  • Agriculture – Dairy farms
  • Agriculture – Sheep and beef farms
  • Agriculture – Other agriculture on farm.

The subsector indicators are weighted by their share of the banking system’s lending.

This comment relates only to the agriculture loan demand indicators. Other indicators (including the agriculture credit availability indicator) are based on single questions in the survey.


Seasonal factors

Banks are asked to ignore regular seasonal fluctuations when responding to the survey.

Credit Conditions Survey released for June 2020

14 July 2020

The Reserve Bank is today releasing the results of its Credit Conditions Survey for June 2020.

The March Survey was collected in early March and thus reflects the views of respondents prior to the announcement of the COVID-19 alert level system and nationwide lockdown. The Reserve Bank therefore decided to conduct an interim Credit Conditions Survey to understand how domestic credit conditions have changed post-lockdown. We do not intend to turn this into a quarterly survey on an ongoing basis.

The biannual Credit Conditions Survey asks banks qualitative questions about changes in credit conditions in bank lending markets. Banks provide separate responses for household, small and medium enterprise, corporate, commercial property and agricultural lending. The questions focus on observed changes in loan demand and credit availability over the previous six months and expected changes over the next six months. It also asks banks how their lending standards have changed over the past six months.

The next Survey will be conducted as usual in September.

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.