Introducing the Credit Conditions Survey

The market for credit plays an important role in New Zealand's economy. Changes in credit market conditions can influence economic growth, as well as the stability and efficiency of the financial system. The Reserve Bank monitors credit conditions in a number of ways, including through a sixmonthly survey of banks. The survey, called the Credit Conditions Survey, asks banks to report on observed and expected changes in demand for and the availability of bank lending. The Reserve Bank has begun publishing key credit conditions indicators from the survey. This article introduces the Credit Conditions Survey. It presents several key credit conditions indicators from the survey and shows how these relate to other indicators of credit availability. In general, the survey appears to produce meaningful indicators of changes in credit conditions. Survey responses also provide insights into future changes in the availability of credit.
1 Introduction Credit markets help businesses and households fund productive investments, and allow consumers to smooth their consumption over their lives. Credit market conditions - the availability of credit, and [...]