29 Sep 2010

Bank lending up slightly in August

6:40 pm on 29 September 2010

New figures from the Reserve Bank of New Zealand show lending by trading banks rose slightly in August, but the amount on loan is still down from the same time a year ago.

Lending by banks to farms, households and firms increased marginally during August.

However, lending is still below the level it was a year ago and lending to firms is well down.

The Reserve Bank says lending to firms is 6.6% lower than August 2009.

Lending to households is up 2.2%, although lending growth is tapering off.

Earlier this year, household credit was growing at an annual rate of nearly 3%.

The growth in lending to farming is also slowing. It was 1.9% higher in August compared with the same time a year ago, compared with annual growth of more than 7% at the start of this year.