Margin loans primary driver of personal lending growth

More than half the growth in personal credit over the six months to June 2006 was due to “very strong growth in margin lending” for the purchase of shares and managed funds, the Reserve Bank of Australia wrote in its quarterly statement on monetary policy. The RBA said margin debt increased by 15 per cent during the June 2006 quarter, and increased by nearly 40 per cent over the year to June. The RBA said these increases were driven mainly by an increase in the average loan size.