Monthly Authorised Deposit Institution Statistics - August 2021

Households have continued to amass savings in August. We have become used to deposits growing rapidly during lockdowns, and the same should continue in next month's release - with both Sydney and Melbourne still tightly restricted during September.

Commentators' expectations are for the savings to be spent down once lockdowns end. Indeed, as we can see above, deposits flattened last summer. If all goes well, we should start seeing the beginnings of a similar pattern from the October release at the end of November, as Sydney begins to open up.

Outstanding investor lending ticked up in August, potentially representing the last hurrah of pre-lockdown sales in June (allowing for a lag). It would not be surprising to see a slowdown in the next couple of releases, as reduced volumes of sales in July and August should translate into lower credit growth.