Latest Insolvency Statistics
ASIC has released the latest Corporate Insolvency statistics, being for January 2011. The January 2011 numbers show 455 companies entering some sort of insolvency administration. That is a significant drop from the previous few months, which have been 750 to 850 for many months, but it simply reflects seasonality in the numbers. January is always a low month for insolvencies because the Courts are not in-session for most of the month.
The previous January was 473 and the average of the previous five Januaries was 416. So, the trend in insolvencies continues to reflect the trend from the second half of last year which is, that insolvency numbers are off their peaks from post-GFC but they are still above the averages from pre-GFC.
We will be publishing our full Quarterly Business Stress Report in about two weeks. That Report will provide more depth on the number of Corporate insolvencies and it will also analyse the costs to Australian Banks of Bad Debts.