Other Deposit Taking Financiers industry revenue is expected to decline in 2012-13 as the demand for credit remains subdued. Part of the reason for this is the reduced level of business investment. Furthermore, households have become net savers in a bid to reduce their debt levels, which ballooned during the pre-crisis days as Australians went on a debt binge.
Interest rates are relatively low, which has meant that the loans that are issued are generating less revenue. Combining this with a reduced volume of loans issued, IBISWorld expects the industry to suffer a decline in revenue of 2.2% in 2012-13.
The Other Deposit Taking Financiers industry includes businesses providing finance, predominantly in the form of business and commercial lending, including financial leasing. Businesses in this industry raise funds from the public and related organisations to be able to provide these services.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.