Credit market Credit may be defined broadly as funds provided to those seeking to borrow. However, analytically useful measures of credit usually exclude borrowings by financial enterprises because their main role is as an intermediary, i.e. they borrow in order to lend. Also, lending and borrowing between enterprises which have a special relationship, such as between companies in the same group or between government agencies, are often excluded from credit measures because transactions between these bodies frequently are of a non-market nature. Similarly, some types of financial instrument, such as trade debts, are not considered to be part of an organised market. It includes raisings by the issue of both debt and equity securities.
Negative numbers indicate repayment or redemption.
Table 26.13 shows indicative interest rates for bank borrowing and lending. Another view of activity in the credit market is provided later in this chapter under Lending by financial institutions . Reserve Bank of Australia Bulletin. Trading is electronic , conducted using the Stock Exchange Automated Trading System. ASX classifies listed companies according to their major activity and produces indexes based on these classifications.