Margin lending has been falling in Australia since the Global Financial Crisis.
This chart shows the mismatch between the steady rise in the equities market and the the downward momentum of margin lending.
While the ASX continues to move higher, investors are still cautious on finance.
The ANZ Bank, in an Australia economic update following the release of financial aggregate data from the Reserve Bank of Australia, says:
Private sector credit looks likely to strengthen next year, led by solid growth in housing and business finance. The housing market maintains considerable momentum and improved business sentiment and strong corporate balance sheets should continue to drive business borrowing higher.
However, it asks: “Will buoyant equity markets stimulater higher margin lending?”