https://www.rba.gov.au/speeches/2020/sp-dg-2020-11-24.html  8/14  11/24/2020  Monetary Policy in 2020 | Speeches | RBA  Graph 6  Housing Credit Growth*  %  Owner-occupier  12  %  Investor  12  Six-month-ended annualised  9  9  6  6  3  3  0  0  %  % Monthly  0.5  0.5  0.0  0.0  -0.5  2010  2015  2020  2010  2015  2020  -0.5  *  Seasonally adjusted and break-adjusted Sources: APRA; RBA  The decline in the cash rate and the increased liquidity in the financial system has led to a decline in deposit rates.
During the period of weakness and recovery, quite a large amount of core deposits flowed back into banks of all sizes reflecting lower interest rates on alternative assets, the softness of the stock market, and the public’s desire for safe assets. As a result, banks had ample liquidity and the resources to fund asset growth.