Bank: Assets - Business loans by asset quality (S51)

The data: coverage, periodicity and timeliness

Coverage characteristics

We source data from our Balance Sheet Survey.

• S10 Banks: Balance sheet
• S30 Banks: Assets – Loans by sector
• S31 Banks: Assets – Loans by purpose
• S32 Banks: Assets – Loans by product
• S33 Banks: Assets – Loans fully secured by residential mortgage by repricing
• S34 Banks: Assets – Loans and Repos by industry
• S35 Banks: Assets – Loans by business size
• S36 Banks: Assets – Business loans by product
• S37 Banks: Assets – Agriculture loans by product
• S40 Banks: Liabilities – Deposits by sector
• S41 Banks: Liabilities – Deposits by industry
• S50 Banks: Assets – Loans by asset quality
• S51 Banks: Assets – Asset quality by business size

Most data starts from 31 December 2016 when the Bank Balance Sheet Survey replaced the Standard Statistical Return (SSR). However, some data has been backdated to provide long-run consistent data. The back series has been estimated using data from the SSR. Asset quality data starts from March 2018.

Data is reported at market values, where applicable, and as at the end of the reporting period.

Data covers assets and liabilities denominated in both NZ dollars and foreign currency. Assets and liabilities denominated in foreign currency are converted into New Zealand dollars in accordance with NZ GAAP.

Periodicity and timeliness

We publish data on the last working day of the month.

Access by the public

Statistics release calendar

The statistics release calendar provides a long-term plan of scheduled releases. We update it and release it on the first working day of the month.

View the statistics release calendar

Integrity

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

We collect data under Sections 262 of the Reserve Bank of New Zealand Act (2021) and 93 of the Reserve Bank of New Zealand Act 1989.

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

We generally publish revisions when we are next due to update and release the table. Should we need to make revisions more promptly, we will post a special note. We post any major changes in methodology as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

The survey template and definitions are available.

Go to the Surveys page

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

Registered banks publish disclosure statements that offer checks for reasonableness.

Loan purpose

Housing

Housing comprises:

• owner occupier property use
• residential investor property use.

Owner occupier property use

Owner occupiers are borrowers who own or are in the process of buying or building the house or flat they will live in as their principal place of residence. An owner can occupy more than one property; for example, a family home and a holiday home. Only households can have owner occupier property use loans.

Residential investor property use

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. This includes ‘mum and dad’ investor loans and any person(s) that have a separate residential investor property use loan that is not for their normal business purpose.

Personal consumer loans

Personal or consumer loans that are not fully secured on residential property including overdrafts, credit cards and term loans.

Business loans

Business loans comprise:

• loans (for business use) to non-financial businesses that are fully secured by residential mortgage
• loans to non-financial businesses that not fully secured by residential mortgage.

Excludes agriculture loans.

Commercial property

Includes:

• investment property
• property development – commercial
• property development – residential.

Investment property

Includes primarily commercial property for capital value appreciation and associated cash flows.

Property development – commercial

Includes primarily construction of office, retail or other commercial developments.

Property development – residential

Includes primarily residential sub-division and residential apartment developments.

Other business

All other business loans that are not for commercial property. Excludes agriculture loans.

Agriculture loans

Business loans to the agriculture industry (ANZSIC06) including:

• dairy farming
• sheep, beef cattle and grain farming
• horticulture
• other agriculture on farm.

Does not include any loans to the agriculture industry for residential investor property use.

Financial institutions loans

Loans to financial institutions. Does not include any loans to financial institutions for residential investor property use.

Other loans

All other loans to general government non-profit institutions serving households.

Loan product

Interest only

Loans that have no scheduled principal repayment. This does not include revolving credit loans that have a fixed limit or revolving credit loans that have a scheduled reducing limit.

Revolving credit

Revolving credit loans are loans that have a fixed limit but no scheduled principal repayment. Such loans can be redrawn and paid back repeatedly within approved limits without further credit approval. This does not include revolving credit loans that have a scheduled reducing limit.

Principal and interest

Loans that have scheduled principal repayment; for example, table loans. This includes revolving credit loans that have a scheduled reducing limit.

Overdraft (personal consumer)

Available balance is below zero (overdrawn).

Credit cards (personal consumer)

Outstanding loans originated and still managed via credit cards.

Term loans (personal consumer)

Loan that is repaid in regular payments over a set period of time. Does not include term loans fully secured by residential property.

All other loans

All other loans and advances not included elsewhere.

Loans fully secured by residential mortgage

Loans fully secured by residential mortgage

Loans secured by a mortgage over a residential property. Excludes loans cross collateralised between residential property and other assets where the share attributable to the residential property cannot be identified.

Owner occupier property use

Owner occupiers are borrowers who own or are in the process of buying or building the house or flat they will live in as their principal place of residence. An owner can occupy more than one property; for example, a family home and a holiday home.

Residential investor property use

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. This includes ‘mum and dad’ investor loans and any person(s) that have a separate residential investor property use loan that is not for their normal business purpose.

Business loans secured by residential property

Business lending where the only security type is a residential mortgage loan. The borrower declares that the loan is for business purposes as part of the loan application. Excludes loans cross collateralised between residential property and other assets where the share attributable to the residential property cannot be identified.

Loan repricing

Floating

Floating rate loans where the interest rate can or does change the following business day and offset loans.

Fixed

All other loans that are not floating or non-interest bearing, which are reporting in the bucket in which the interest rate resets. Loans are reported on a non-amortised basis i.e. the fully outstanding loan principal is reported in the time bucket in which the loan’s interest rate is re-priced or reset.

ANZSIC

ANZSIC 2006

The Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 is used to compile and analyse industry statistics in New Zealand and Australia.

Data for loans by (ANZSIC) industry (S34) will not align with loans by sector (S30) or purpose (S31). For example:

• Loans by (ANZSIC) industry (S34) includes securities purchased under agreement to resell (repos).
• Loans to the public administration and safety industry does not include Crown entities (S34). Loans to Crown entities are included in the general government sector (S30).
• Loans to ACC and EQC are included in the insurance industry (S34). Loans to ACC and EQC are included in the general government sector (S30).
• Loans to district health boards (DHBs) are included in the health care and social assistance industry (S43). Loans to DHBs are included in the general government sector (S30).
• Loans to the agriculture industry includes loans for residential investor property use and loans to Crown entities involved in agriculture (S34). The loans for agriculture purposes does not include residential investor property use or loans to Crown entities involved in agriculture (S31).
• Loans to the rental, hiring and real estate surveys includes loans for residential investor property use (S34).

Loans by business size

Loans by business size

Business loans are categorised by the size of their business turnover. Further guidance on loans by business size can be found in the Bank Balance Sheet definitions. Business loans by size is a breakdown of business loans in table S51.

Small

Turnover less than $1m.

Medium

Turnover greater than $1m and less than $50m.

Large

Turnover greater than $50m.

SME

Small and medium enterprise loans.

Loans by asset quality

Total loans

Gross loans and advances.

Impaired loans

A loan or advance is impaired when one or more events occur that cause a lender to believe they will not receive all of the future principal and interest repayments that have been contractually agreed with the borrower. These events could include: the borrower entering significant financial difficulty or bankruptcy; the borrower failing to make repayments as required and the loan becoming past due; the contractual agreement between the lender and borrower being restructured or amended; the borrower breaching covenants or other terms and conditions that have been contractually agreed with the lender.

Loans 90 days past due but not impaired

A loan or advance is past due when the borrower fails to make a payment (of principal and/or interest) when that payment was contractually due. When a borrower has failed to make repayments on a loan for 90 or more days, that loan is 90 days past due.

Total non-performing loans

The total value of loans and advances that are 90 days past due plus impaired loans.

Non-performing loans ratio (%)

Ratio of total non-performing loans to total loans.

Individual provisions

An allowance for expected credit impairment loss on individual loans and advances where the borrower is having difficulty servicing the loan, or where a loan or advance becomes non-performing.

Collective provisions

An allowance for anticipated credit impairment loss from groups of loans and advances.

Difference to other published tables

The tables S50 Loans by Asset Quality and S51 Asset Quality by Business Size will not align with series published in table S31 Loans by Purpose due to business loans fully secured by residential property not being collected with a detailed Asset Quality breakdown. Business loans fully secured by residential property are published in Table S33 Loans fully secured by residential mortgage, by time until next repricing.

Other

Foreign currency (FX)

The New Zealand dollar equivalent of foreign currency balances.

Symbols and conventions for summary table

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.