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Households' Interest-bearing Assets

Author

Listed:
  • Ellis Connolly

    (Reserve Bank of Australia)

  • Fiona Fleming

    (Reserve Bank of Australia)

  • Jarkko Jääskelä

    (Reserve Bank of Australia)

Abstract

Households invest around two-fifths of their financial assets in interest-bearing assets. These assets are predominantly held directly in deposits and also via superannuation and other investment funds. Deposits have grown strongly in recent years, although there has been no growth in interest-bearing securities. Compared with other advanced economies, interest-bearing assets represent a relatively small share of financial assets. For the household sector as a whole, interest-bearing assets are lower in value than debt, so household disposable income increases as interest rates decline. Interest-bearing assets tend to be held by retirees, while younger households are more likely to be in debt. Interest-bearing assets are expected to rise over time as the population ages.

Suggested Citation

  • Ellis Connolly & Fiona Fleming & Jarkko Jääskelä, 2012. "Households' Interest-bearing Assets," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 23-32, December.
    • Handle: RePEc:rba:rbabul:dec2012-03
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2012/dec/pdf/bu-1212-3.pdf
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    References listed on IDEAS

    as
    1. Richard Finlay, 2012. "The Distribution of Household Wealth in Australia: Evidence from the 2010 HILDA Survey," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 19-27, March.
    2. Gianni La Cava & John Simon, 2003. "A Tale of Two Surveys: Household Debt and Financial Constraints in Australia," RBA Research Discussion Papers rdp2003-08, Reserve Bank of Australia.
    3. Matthew Boge & Ian Wilson, 2011. "The Domestic Market for Short-term Debt Securities," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 39-48, September.
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