Reserve Bank of Australia (A Tables) Assets and Liabilities of Financial Institutions (B Tables) Payments System (C Tables) Money and Credit Statistics (D Tables) Government Finance (E Tables) Financial Markets (F Tables) Prices and Output (G Tables) Balance of Payments and External Finance (H Tables) Overseas Economic Statistics (I Table) Technical Notes to Tables
Reserve Bank of Australia The ‘Reserve Bank of Australia’ is shown separately from other banks and non-bank financial institutions because of its special role in the economy and the financial system as specified in the Reserve Bank Act 1959, the Banking Act 1959, the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998. The Reserve Bank has responsibility for: the conduct of monetary policy; maintenance of financial system stability and promotion of safety, efficiency and competition in the payments system. It issues Australian currency notes and acts as banker to the Australian Government. A.1 Reserve Bank of Australia – Liabilities and Assets Liabilities: ‘Capital and Reserve Bank Reserve Fund’ whereby the Reserve Bank Reserve Fund (RBRF) is a general reserve. RBRF provides for potential losses arising from events which are contingent and non-foreseeable, mainly those which arise from movements in market values of the RBA’s holdings of Australian dollar and foreign securities as well as from fraud and other non-insured losses or events. On 1 July 2001 the amount of $3 323 million (Contingencies and General Purpose Reserve) was transferred from ‘Other liabilities’ to ‘Capital and Reserve Bank Reserve Fund’. Prior to July 1996 the series ‘Exchange settlement balances’ primarily reflected deposits of Australian banks, comprising non-callable deposits and, prior to September 1988, Statutory Reserve Deposits and deposits by savings banks. The Statutory Reserve Deposit requirement on trading banks was removed in 1988 and the non-callable deposit requirement was abolished in July 1999. The Bank commenced paying interest on Exchange settlement balances in July 1996. ‘RBA term deposits’ are short-term deposits of institutions holding an Exchange Settlement Account and authorised deposit-taking institutions that are members of RITS. ‘Deposits of overseas institutions’ and ‘Governments and instrumentalities’ include the IMF and central banks. ‘Other liabilities’ include provisions, current year profit/loss, the counterpart obligation arising from transactions in repurchase agreements, and obligations arising from the outright purchase of securities which have been contracted but not yet settled. Assets: ‘Gold and foreign exchange’ assets include foreign exchange holdings invested in government securities and bank deposits, market value of open forward foreign exchange contracts and IMF Special Drawing Rights. Securities sold but contracted for purchase under repurchase agreements are retained on the balance sheet in this category. ‘Clearing items’ include cheques and bills of other banks, bills receivable and remittances in transit. They may also include amounts owed to the Bank for overnight clearances of financial
transactions. ‘Australian dollar securities’ include Australian Treasury fixed coupon bonds, Treasury capital indexed bonds and securities issued by the central borrowing authorities of State and Territory Governments. Securities sold but contracted for purchase under repurchase agreements are retained on the balance sheet in this category. Also included are Australian dollar securities contracted for sale under repurchase agreements, being eligible bank bills and certificates of deposit, Australian dollar denominated securities issued by certain foreign governments, foreign government agencies, highly rated supranational organisations and ADIs, and highly rated residential mortgage-backed securities and asset-backed commercial paper. ‘Other assets’ include the Bank’s holdings of Australian notes and coins, Bank premises and other durable assets, and the Bank’s shareholding in the Bank for International Settlements. A.2 Reserve Bank of Australia – Monetary Policy Changes Monetary policy changes are expressed in terms of a target for the cash rate – the interest rate paid or received on unsecured overnight funds in the interbank market. Commencing February 2008, the announcement is made on the day of the Reserve Bank Board meeting, effective the following day. Prior to this time, the announcement and effective dates were the same. A.3 Reserve Bank of Australia – Open Market Operations ‘System cash position’ is an estimate of the change in the aggregate level of Exchange Settlement (ES) balances at the RBA, prior to the RBA’s open market operations on that day. A negative value indicates a projected fall in the level of ES balances, while a positive value indicates a projected rise. The estimate is based on information about settlements arising from transactions by the RBA’s clients, including the Australian Government, as well as the RBA’s own transactions, and is announced at 9:30 am each trading day. ‘Outright securities transactions’ are purchases and sales, conducted as part of the Bank’s open market operations, of securities issued by the Australian Government and State and Territory central borrowing authorities with remaining terms to maturity up to around 18 months. A positive value indicates the RBA has purchased securities while a negative value indicates the RBA has sold securities. ‘Foreign exchange swaps’ is the aggregate value of the first leg of foreign exchange swaps transacted for same-day value specifically for domestic liquidity management purposes. A positive value indicates the RBA has sold Australian dollars for foreign currency while a negative value indicates the RBA has purchased Australian dollars. The value of the second leg of a foreign exchange swap is captured in the ‘System cash position’ on the unwind date. ‘Repurchase agreements (RPs)’ is the aggregate amount of the first leg of all securities bought/sold by the RBA under repurchase agreement (RP). A positive value indicates the RBA has purchased securities under RPs while a negative value indicates the RBA has sold securities under RPs. It does not include RPs which are transacted through the RBA’s overnight RP facility. The value of the second leg of all RPs is captured in the ‘System cash position’ on the respective value dates. ‘Exchange Settlement account balances (end day)’ is the aggregate of all ES balances held at the RBA at the close of business. Unexpected movements in ES balances and overnight RPs transacted through the RBA’s overnight RP facility mean that ‘Exchange Settlement account balances (end day)’ will not necessarily be the sum of the previous day’s ‘Exchange Settlement account balances (end day)’, the ‘System cash position’ and the total of ‘Open market operations’ transacted. ‘Details of repurchase agreements’ is a summary of the type of security delivered to/by the RBA under RP and the weighted average term and rates transacted. ‘General collateral’ refers to eligible securities issued by the Australian Government, State and Territory governments, supranational institutions, foreign governments and government agencies. ‘Private securities’ covers all other eligible collateral, including ADI-issued securities (eligible bank-issued discount securities and certificates of deposit with 12 months or less to maturity and bonds issued by ADIs), asset-backed securities (eligible residential mortgage-backed securities and asset-backed commercial paper) and eligible commercial paper. ‘RP weighted average term’ is the average of the RP terms dealt by the RBA through open market operations, weighted by the amount transacted. ‘RP weighted average rate’ is the average of the rates on RPs dealt by the RBA through open market operations, weighted by the amount transacted.
A.4 Reserve Bank of Australia – Foreign Exchange Transactions and Holdings of Official Reserve Assets ‘RBA foreign exchange transactions’, sales (-) and purchases (+), are reported according to the date on which settlement takes place (‘value date’). Figures in the top half of the table refer to period totals for ‘RBA foreign exchange transactions’, ‘Change in reserve assets due to valuation’ and ‘Total change in reserve assets’. ‘Market’ transactions are foreign exchange transactions against the Australian dollar (excluding foreign exchange swaps) undertaken by the RBA with authorised foreign exchange dealers in Australia or banks overseas. ‘Australian Government’ transactions are the RBA’s foreign exchange transactions with the Australian Government. ‘Other outright’ transactions include the RBA’s outright transactions with other central banks, international financial institutions which are not intended to affect the exchange rate, clients other than the Australian Government, and interest received on holdings of foreign assets. ‘Swap deliveries’ are RBA foreign exchange swap transactions that settled during the period, excluding swaps conducted with the Federal Reserve as part of the USD Swap Facility. For the period January 1995 until February 1996 ‘Other outright’ includes ‘Swap deliveries’. ‘Official reserve assets’ comprise holdings of ‘Foreign exchange’, ‘Gold’ and ‘Other’ reserve assets, which comprise Special Drawing Rights, Reserve position in the IMF and the net value of swap transactions conducted with the Federal Reserve as part of the USD Swap Facility. Figures in the bottom half of the table are end period values. ‘Outstanding forward foreign exchange commitments’ mainly reflect market values of the second leg of RBA swap transactions outstanding and, from time to time, outstanding RBA outright forward transactions. Prior to July 2002 contract values are reported. The sum of ‘Gold’ and ‘Foreign exchange’ may differ from figures reported in the weekly Statement of Liabilities and Assets and the RBA’s Annual Report. From 1 July 1996, foreign currency securities sold under repurchase agreements are retained for accounting purposes as foreign currency investments in the RBA’s balance sheet, in accordance with standard accounting treatment. For the purpose of reporting foreign exchange reserves in this table, however, securities sold under repurchase agreements are excluded. In addition, from 20 December 2006, foreign exchange sales (-) and purchases (+) are reported for accounting purposes according to the date on which they are contracted (‘trade date’). For the purpose of reporting foreign exchange reserves in this table, however, foreign exchange transactions are reported according to the date on which settlement takes place (‘value date’). Assets and Liabilities of Financial Institutions and Non-financial Sectors B.1 Assets of Financial Institutions This table brings together aggregate data for banks, credit unions, building societies, corporations covered by the Financial Sector (Collection of Data) Act 2001 (known as Registered Financial Corporations (RFCs)) and other significant parts of the financial sector for which aggregate data are published by the RBA, the ABS and APRA. Care should be exercised in drawing conclusions about relative sizes and rates of growth of institutions because of the different nature of their activities and different coverage of the various data collections. Coverage differences include: timing (e.g. most bank data are monthly averages until June 2000 and end-month thereafter); valuation; location (e.g. life office data before 1988 only covers assets in Australia, most other collections include overseas assets); and netting out of transactions within some groups. Coverage of some series changes over time: in recent years aggregates for individual groups have been significantly affected by conversion of nonbanks to banks, reclassification between RFC categories and changes to reporting forms. Some further details of coverage can be obtained from tables, or Notes to Tables, in this Bulletin dealing with the relevant institutions. ‘Reserve Bank (RBA)’ data for June 1996 adjusted for change in accounting policy. ‘Banks (other than RBA)’: up to 1985 inclusive refers to A$ assets in Australia only. From 1989 equals the totals shown in Table B.2. ‘Other authorised deposit-taking institutions’ excludes some ADIs, including SCCIs. Data from December 1999 inclusive are drawn from APRA’s quarterly return. These data will differ from the total assets figures presented in Tables B.7 and B.8 because they include assets of all building societies and credit unions, whereas B.7 and B.8 only include data for building societies and credit unions with total assets greater than or equal to $50 million.
From December 1999 data, ‘RFCs’ cover registered corporations whose assets in Australia (including related corporations) exceed $50 million. Prior to December 1999, this threshold was set at $5 million. In April 2003, responsibility for the collection of financial statistics from RFCs was transferred from the RBA to APRA. Prior to April 2003, these data were collected by the RBA under the now repealed Financial Corporations Act 1974. These changes have resulted in breaks in all series covering RFCs; see part (c) of the Technical Notes to Tables for details. ‘Finance companies and general financiers’ includes corporations formerly registered as Category E (Pastoral Finance Companies), F (Finance Companies) and G (General Financiers) under the Financial Corporations Act 1974. The assets of life offices and superannuation funds and other managed funds have been consolidated by the ABS. As a result, these data should not be compared to Tables B.14– B.18, which contain unconsolidated data. ‘General insurance offices’ include both private and public sector offices. Data sourced from the ABS Financial Accounts and relate to financial assets only. ‘Securitisation vehicles’ (commonly referred to as issuers of asset-backed securities) are special purpose vehicles set up to securitise selected assets, including residential mortgages. Many of the securities issued by these vehicles are held by other institutions shown in the table. More detailed data are shown in Table B.19. Banks (excluding Reserve Bank) The figures in this set of tables, except where otherwise stated, are derived from returns submitted to the Australian Prudential Regulation Authority (APRA) by banks authorised under the Banking Act 1959. APRA assumed responsibility for the supervision and regulation of banks on 1 July 1998. Data prior to that date were submitted to the RBA. B.2 Banks –Assets Up to and including June 2000, figures are averages of weekly (Wednesday) figures. From July 2000 figures are for the last business day of every month. Up to and including March 2002, banks submitted Form D (Statement of Liabilities and Assets on the Australian Books). In March 2002, APRA implemented new reporting forms for banks. The figures in Table B.2 dating from April 2002, are derived from ARF 320.0 Statement of Financial Position (Domestic Books). ARF 320.0 covers the domestic books of the licensed bank and is an unconsolidated report of the Australian bank’s operations/transactions that are booked or recorded inside Australia (with Australian residents and non-residents). ARF 320.0 does not consolidate Australian and offshore-controlled entities (thus offshore branches of the Australian bank are excluded). ARF 320.0 includes transactions of Australian-based offshore banking units of the licensed ADI but excludes transactions of overseas-based offshore banking units. An Australian ‘resident’ is any individual, business or other organisation domiciled in Australia. Australian branches and subsidiaries of foreign businesses are regarded as Australian residents. A ‘non-resident’ is any individual, business or other organisation domiciled overseas. Foreign branches and subsidiaries of Australian businesses are regarded as nonresidents. ‘Resident assets – notes and coins, and deposits due from RBA’ includes: Australian and foreign currency notes and coins; settlement account balances with the RBA and any other central bank; and any other funds held at the RBA. ‘Resident assets – bills receivables’ refers to assets arising from undertakings by customers to pay bills of exchange drawn by the banks. From April 2002, this item includes Australian dollar and foreign currency denominated (AUD equivalent) bill receivables. Prior to that date, foreign currency denominated (AUD equivalent) bill receivables are included in ‘resident assets – other assets’. ‘Resident assets – loans and advances – residential’ include: owner-occupied and investment housing loans. ‘Resident assets – loans and advances – personal’ include: revolving credit; credit cards; personal lease financing; and other personal term loans. ‘Resident assets – loans and advances – commercial’ include: loans to community service organisations and non-profit institutions; loans to non-financial corporations; loans to general government; and loans to financial corporations. The loans and advances data are net of specific provisions for bad and doubtful debts, but gross of general provisions for bad and doubtful debts. Loans and advances exclude: bills of exchange, commercial paper, promissory notes, certificates of deposits, and some other debt securities. From April 2002, loans and advances refer to
Australian dollar and foreign currency denominated (AUD equivalent) loans and advances. Prior to that date, foreign currency denominated (AUD equivalent) loans and advances are included in ‘resident assets – other assets’. ‘Resident assets – other assets’ refers to all other resident assets not included in the above items. Prior to April 2002, this item includes: shares; bullion; past-due bills; accounts receivable; prepayments made; public sector securities; and all other resident assets other than accrued interest not yet receivable and intangible assets. From April 2002, this item includes: cash and liquid assets other than notes and coins and deposits due from RBA; trading and investment securities; fixed assets; intangible assets; other investments and all other assets not reported above. Note that, from April 2002, this item also includes unrealised gains on trading derivatives – prior to that date, these were excluded. ‘Resident assets – total’ refers to total assets on the Australian books of banks that are due from residents, and is the sum of the above items. ‘Resident assets – of which: denominated in foreign currency’ refers to the Australian dollar equivalent of ‘resident assets – total’ on the Australian books of banks that are denominated in foreign currency. ‘Non-resident assets – total’ refers to total assets on the Australian books of banks that are due from non-residents, though from April 2002, this series excludes the total amount due from banks’ overseas operations, which have been separately identified on the new reporting form. ‘Non-resident assets – of which: denominated in foreign currency’ refers to the Australian dollar equivalent of ‘non-resident assets – total’ on the Australian books of banks that are denominated in foreign currency. ‘Total assets’ is the sum of ‘resident assets – total’ and ‘non-resident assets – total’. From April 2002, this item also includes the ‘amount due from overseas operations’, which is identified separately from ‘resident assets – total’ and ‘non-resident assets – total’. The ‘amount due from overseas operations’ refers to domestic book on-balance sheet assets due from overseas operations of banks which have not been included in the above items. B.3 Banks – Liabilities Up to and including June 2000, figures are averages of weekly (Wednesday) figures. From July 2000 figures are for the last business day of every month. Up to and including March 2002, banks submitted Form D (Statement of Liabilities and Assets on the Australian Books). In March 2002, APRA implemented new reporting forms for banks. The figures in Table B.3 dating from April 2002, are derived from ARF 320.0 Statement of Financial Position (Domestic Books). ARF 320.0 covers the domestic books of the licensed bank and is an unconsolidated report of the Australian bank’s operations/transactions that are booked or recorded inside Australia (with Australian residents and non-residents). ARF 320.0 does not consolidate Australian and offshore-controlled entities (thus offshore branches of the Australian bank are excluded). ARF 320.0 includes transactions of Australian-based offshore banking units of the licensed ADI but excludes transactions of overseas-based offshore banking units. An Australian ‘resident’ is any individual, business or other organisation domiciled in Australia. Australian branches and subsidiaries of foreign businesses are regarded as Australian residents. A ‘non-resident’ is any individual, business or other organisation domiciled overseas. Foreign branches and subsidiaries of Australian businesses are regarded as nonresidents. ‘Resident liabilities – deposits’ include: transaction and non-transaction deposit accounts; and certificates of deposit. From April 2002, this item includes both Australian dollar and foreign currency denominated (AUD equivalent) deposits. Prior to that date foreign currency denominated (AUD equivalent) deposits are included in ‘resident liabilities – other liabilities’. Certificates of deposit relate to both residents and non-residents. ‘Resident liabilities – bill acceptances’ refers to liabilities arising from undertakings by banks to pay bills of exchange drawn on customers. From April 2002, this item includes both Australian dollar and foreign currency denominated (AUD equivalent) bill acceptances. Prior to that date foreign currency denominated (AUD equivalent) bill acceptances are included in ‘resident liabilities – other liabilities’. Prior to April 2002, ‘resident liabilities – other borrowings’ refers to Australian dollar denominated items only and includes: balances (other than deposits) to overseas banks not authorised in Australia; issues of term subordinated debt; and loan capital and similar instruments. From April 2002, this item includes: Australian dollar and foreign currency denominated (AUD equivalent) other borrowings; securities sold under agreements to
repurchase; promissory notes and commercial paper; other short-term debt securities; bonds; notes; and long-term borrowings. ‘Resident liabilities – other liabilities’ refers to all other resident liabilities not included in the above items. Prior to April 2002, this item includes: all provision accounts other than those relating to bad and doubtful debts; accounts payable and prepayments received; gold bullion borrowings which are repayable in physical gold; credit balances resulting from netting of all deferred tax liabilities and tax benefit accounts; cheques drawn by a bank on itself but not yet presented; and all other resident liabilities on banks’ Australian books other than retained earnings and shareholders’ funds, accrued interest not yet payable and inter-branch accounts. From April 2002, this item includes: liabilities due to clearing houses and due to financial institutions in relation to the payments system; income tax liabilities; provisions for dividends, employee entitlements, non-lending losses, restructuring costs and other; creditor and related liabilities; and loan capital and hybrid securities. Note that, from April 2002, this item also includes: accrued interest not yet payable; inter-branch transfers; and unrealised losses on trading derivatives – prior to that date, these were excluded. ‘Resident liabilities – total’ refers to total liabilities on the Australian books of banks that are due to residents, and is the sum of the above items. ‘Resident liabilities – of which: denominated in foreign currency’ refers to the Australian dollar equivalent of ‘resident liabilities – total’ on the Australian books of banks that are denominated in foreign currency. ‘Non-resident liabilities – total’ refers to total liabilities on the Australian books of banks that are due to non-residents, though from April 2002, this series excludes the total amount due to banks’ overseas operations, which have been separately identified on the new reporting form. ’Non-resident liabilities – of which: denominated in foreign currency’ refers to the Australian dollar equivalent of ‘non-resident liabilities – total’ on the Australian books of banks that are denominated in foreign currency. ‘Total liabilities’ is the sum of ‘resident liabilities – total’ and ‘non-resident liabilities – total’. From April 2002, this item also includes the ‘amount due to overseas operations’, which is identified separately from ‘resident liabilities – total’ and ‘non-resident liabilities – total’. The ‘amount due to overseas operations’ refers to domestic book on-balance sheet liabilities due to the overseas operations of banks which have not been included in the above items. B.4 Banks – Consolidated Group Off-balance Sheet Business Prior to March 2002, banks reported quarterly to APRA on the Off-balance Sheet Business Return. From that date until the end of 2007, banks reported quarterly on ARF 112.2: Capital Adequacy – Off-balance Sheet Business. Following the introduction of a new capital framework (Basel II) on 1 January 2008, the data from March 2008 are reported on either ARF 112.2: Capital Adequacy – Off-balance Sheet Business, ARF 112.2A: Standardised Credit Risk – Off-balance Sheet Exposures, or ARF 118.0: Off-balance Sheet Business, depending on whether the bank has been approved by APRA to use a Basel II advanced approach to credit risk. ‘Consolidated group’, for a locally incorporated bank, refers to the global operations of the bank and its subsidiaries, excluding those involved in insurance, funds management/trustee and non-financial business. For a foreign bank authorised to operate in Australia as a branch, the data relate to the operations of the branch only. Figures are as at the last business day of the quarter and refer to the principal amount (face value) of the transaction. From March 2002, banks are required to report separately activity in the banking and trading books for interest rate contracts, foreign exchange contracts, and other derivative contracts. Banking and trading book figures are added to produce the data reported in the Table. Before March 2002, exposures were netted across the banking and trading books (except credit derivatives). This has necessitated a break in the series. ‘Direct credit substitutes’ covers any irrevocable obligations that carry the same credit risk as a direct extension of credit. This includes the issue of guarantees, confirmation of letters of credit, standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities, and certain bills endorsed under bill endorsement lines. ‘Direct credit substitutes’ does not include credit derivatives, which are shown separately. ‘Trade- and performance-related items’ covers contingent liabilities arising from trade-related obligations secured against an underlying shipment of goods and any irrevocable obligations to make a payment to a third party if a counterparty fails to perform a contractual nonmonetary obligation. This includes documentary letters of credit issued, acceptances on trade
bills, shipping guarantees issued, issue of performance bonds, bid bonds, warranties, indemnities, standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction, and any other trade- and performance-related items. ‘Commitments and other non-market-related items’ includes lending of securities or posting of securities as collateral, assets sold with recourse, forward asset purchases, partly paid shares and securities, placements of forward deposits, underwriting facilities, standby lines of credit, redraw facilities, undrawn credit card facilities, and all other non-market-related off-balance sheet items. ‘Interest rate contracts – OTC forwards’ covers single currency over-the-counter interest rate forwards including forward rate agreements. ‘Interest rate contracts – OTC swaps’ covers single currency over-the-counter interest rate swaps. ‘Interest rate contracts – Other’ covers other single currency over-the-counter and exchangetraded interest rate contracts including interest rate options written and purchased. ‘Foreign exchange contracts – OTC forwards’ covers over-the-counter foreign exchange forwards including foreign exchange forward contracts involving gold. ‘Foreign exchange contracts – OTC swaps’ covers over-the-counter foreign exchange swaps including cross currency interest rate swaps and foreign exchange swap contracts involving gold. ‘Foreign exchange contracts – Other’ covers other over-the-counter and exchange-traded foreign exchange contracts including other foreign exchange contracts involving gold. ‘Credit derivatives’ covers all credit derivatives contracts, both where protection is purchased and protection is sold. Banks were required to report credit derivatives exposure to APRA from June 2000 following a change to the Off-balance Sheet Business Return. This has necessitated a break in the series. ‘Other off-balance sheet business’ covers equity contracts including written and purchased options positions, derivatives based on gold and precious metals, base metals, energy and other commodities, and all other derivative activity. B.5 Banks – Consolidated Group Impaired Assets Prior to March 2002, banks reported to APRA on the Impaired Assets Return. From that date, banks report quarterly on ARF 220.0: Impaired Assets. Refer to the notes to Table B.4 for the definition of ‘consolidated group’. ‘Total assets’ includes the total on-balance sheet assets reported to APRA by locally incorporated banks for capital adequacy purposes, and the assets of the Australian bank operations of foreign bank branches. ‘Impaired assets’ refers to the aggregate of a reporting bank’s non-accrual and restructured exposures, both on- and off-balance sheet, plus any assets acquired through the enforcement of security conditions. Off-balance sheet exposures include, inter alia, commitments to provide funds which cannot be cancelled or revoked and the credit equivalent amounts of interest rate, foreign exchange and other market-related instruments. ‘Non-accrual items’ refers to exposures on which income may no longer be accrued ahead of its receipt because there is doubt about the ultimate collectibility of principal and/or interest. Included are facilities where contractual payments of principal and/or interest are 90 or more days in arrears (or which have remained continuously outside approved limits for 90 or more days) and the associated security is insufficient to cover payment of principal and accrued interest. ‘Restructured items’ refers to exposures, not classified as non-accrual, where the original contractual terms have been modified to provide for concessions of interest or principal, for reasons related to customers’ financial difficulties, which render the facilities ‘non-commercial’ to the bank. ‘Other real estate owned’ (OREO) refers to real estate acquired through security enforcement or otherwise as settlement for outstanding obligations. Excluded are properties controlled under ‘mortgagee in possession’ rights. ‘Other assets acquired’ refers to all other assets acquired through security enforcement or otherwise as settlement for outstanding obligations. ‘Write-offs’ refers to the aggregate value of items written off against provisions or profits during the period. ‘Past-due items’ refers to items which are 90 or more days in arrears but are well secured and
have no provisions held against them. Items classified as impaired assets are excluded. ‘Specific provisions’ includes specific provisions raised against impaired assets as well as those raised against portfolios of loans based on arrears data. ‘General provisions’ are reported net of associated future income tax benefits. Foreign bank branches do not report general provisions. For further information, refer RBA Media Release of 18 January 1995 (reprinted in the February 1995 issue of the Bulletin). B.6 Banks – Consolidated Group Capital Prior to March 2002, banks reported to APRA on the Capital Adequacy Return. From that date, banks report quarterly on ARF 110.0: Capital Adequacy. Refer to the notes to Table B.4 for the definition of ‘consolidated group’. Following the introduction of a new capital framework (Basel II) on 1 January 2008, the data from March 2008 contain significant breaks. For details of the Basel II framework, refer to APRA prudential standards APS 110–APS 116, APS 120 and APS 150. For detailed definitions of the capital components listed below, refer to APS 111. This table excludes data of foreign banks authorised to operate in Australia as branches. Measures of capital are net of deductions such as future income tax benefits, intangible assets, investments in non-consolidated subsidiaries, holdings of other banks’ capital instruments and other assets which are not eligible for inclusion in capital. The breaks in Tier 1 and Tier 2 capital in March 2008 are largely due to changes in the items which banks are required to deduct from capital. Under Basel II, there are a number of new deductions from Tier 1 and Tier 2 capital, and amounts that were previously deducted from the capital base are instead generally deducted half from Tier 1 capital and half from Tier 2 capital. ‘Tier 1’ capital consists of ‘Share capital’ and other Tier 1 capital items. ‘Share capital’ comprises the paid-up value of ordinary shares and non-innovative Tier 1 capital instruments such as irredeemable preference shares on which dividends are noncumulative. Other Tier 1 capital includes retained earnings, certain reserves and innovative Tier 1 capital instruments up to certain limits. ‘Tier 2’ capital consists of ‘Upper Tier 2’ capital and lower Tier 2 capital. ‘Upper Tier 2’ capital includes perpetual cumulative preference shares, mandatory convertible notes and subordinated debt, excess Tier 1 capital instruments, and revaluation reserves of premises, securities and other assets. Under Basel I and the standardised approach to credit risk under Basel II, upper Tier 2 capital also includes the eligible amount of provisions for credit losses (up to a maximum of 1.25 per cent of risk-weighted assets). Banks using the Basel II internal ratings based approach can include any excess of eligible provisions over the amount of their expected losses in upper Tier 2 capital (up to a limit of 0.6 per cent of riskweighted assets). Lower Tier 2 capital includes limited life redeemable preference shares, term subordinated debt and other similar instruments; it cannot exceed 50 per cent of Tier 1 capital. ‘Tier 2’ capital cannot exceed ‘Tier 1’ capital. Under Basel I, the ‘Total capital base’ is calculated as the sum of net Tier 1 and net Tier 2 capital minus additional capital deductions. Under Basel II, the ‘Total capital base’ is the sum of net Tier 1 and net Tier 2 capital. ‘Risk-weighted assets’ comprise a ‘credit risk’ component and a ‘market risk and other exposures’ component. Basel II led to significant changes in the calculation of credit risk weights. Under Basel II, banks must also calculate an explicit charge for operational risk, which is included in ‘market risk and other exposures’ from March 2008. ‘On-balance sheet’ assets represent the risk-weighted gross amounts of banking book assets. ‘Off-balance sheet’ assets represent the risk-weighted credit equivalent amounts of commitments, derivatives and other business considered to be ‘off-balance sheet’ prior to the introduction of AIFRS. ‘Tier 1 capital ratio’ refers to Tier 1 capital expressed as a proportion of total risk-weighted assets. ‘Total capital base ratio’ refers to the capital base as a proportion of total risk-weighted assets. Other Authorised Deposit-taking Institutions
Building societies and credit unions became authorised deposit-taking institutions (ADIs) under the Banking Act 1959 on 1 July 1999 when responsibility for their prudential regulation shifted from the States and Territories to the Australian Prudential Regulation Authority (APRA). Since 1 July 1999, building societies and credit unions have submitted monthly returns to APRA; prior to that date, they submitted returns to the Reserve Bank under the Financial Corporations Act 1974. In September 2001, APRA implemented new reporting forms for building societies and credit unions. The figures in Tables B.7 and B.8, dating from October 2001, are derived from ARF 323.0: Statement of Financial Position (Licensed ADI). Since December 1999, Tables B.7 and B.8 have only included data for building societies and credit unions with total assets greater than or equal to $50 million. Series breaks are reported in the Technical Notes to Tables. B.7 Building Societies – Selected Assets and Liabilities and B.8 Credit Unions – Selected Assets and Liabilities Selected assets: ‘Cash and liquid assets’ is composed of ‘Cash’, ‘Balances with ADIs’ and ‘Cash and liquid assets – Other’. None of these items include bills of exchange, bills receivable, remittances in transit or certificates of deposit. ‘Cash’ includes Australian and foreign currency notes and coins, gold coin, gold bullion, and gold certificates held as investments. It excludes loans repayable in gold bullion. ‘Balances with ADIs’ includes deposits at call with Australian resident banks and other ADIs and settlement account balances due from banks and other ADIs, incorporating receivables for unsettled sales of securities. ‘Cash and liquid assets – Other’ includes deposits at call with RFCs and other financial institutions, net claims on recognised clearing houses in Australia, securities purchased under agreements to resell, funds held with the Reserve Bank and other central banks, and settlement account balances due from the Reserve Bank, other central banks, RFCs and other financial institutions, incorporating receivables for unsettled sales of securities. ‘Government securities’, ‘ADI securities’, ‘Corporate paper’ and ‘Other securities’ include both trading and investment securities. Trading securities are recorded at net fair value. Investment securities are recorded at cost and adjusted for the amortisation of any premiums and discounts on purchase over the period of maturity. ‘Government securities’ include securities issued by the Australian, State, Territory and local governments and State and Territory central borrowing authority (CBA) securities. ‘ADI securities’ includes securities issued by banks and other ADIs, but not equity investments in parent, controlled or associated entities. ‘Other securities’ includes asset-backed securities, other debt securities and equity securities, other than those issued by ADIs, but not equity investments in parent, controlled or associated entities. ‘Residential’ includes both owner-occupied and investment housing loans to Australian householders, net of specific provisions for doubtful debts. ‘Personal’ includes revolving credit for a purpose other than housing, credit card liabilities, lease financing net of unearned revenue, and other personal term loans to Australian householders net of specific provisions for doubtful debts. ‘Commercial’ includes loans to public non-financial corporations, private trading corporations, private unincorporated businesses, community service organisations, Australian, State, Territory and local governments, ADIs and other financial institutions, net of specific provisions for doubtful debts. Loans to ADIs and other financial institutions includes loans to the Reserve Bank and other central banks, banks, other ADIs, RFCs, central borrowing authorities, fund managers, stockbrokers, insurance brokers, securitisers, mortgage, fixed interest and equity unit trusts and other financial intermediaries. Selected Liabilities: ‘Borrowings from ADIs’ includes settlement account balances due to ADIs and both variable and fixed interest rate short-term loans from ADIs. A loan is reported as short-term if its residual term to maturity is one year or less. ‘Deposits’ includes retail transaction call deposit accounts held by households, all other transaction call deposit accounts held by entities other than households, deposits from resident banks, resident non-bank financial institutions and intermediaries such as merchant banks, vostro balances from banks and NBFIs, the Australian-dollar equivalent of foreign
currency deposits, deposits from controlled and associated entities, retail non-transaction call deposit accounts held by households, all other non-transaction deposit call accounts held by entities other than households, term deposits, certificates of deposit and other forms of deposits. ‘Other’ liabilities includes settlement account balances due to RFCs and other financial institutions, securities sold under agreements to repurchase, promissory notes or commercial paper with a residual term to maturity of one year or less, other debt securities with a residual term of one year or less, variable interest rate short-term loans from counterparties other than ADIs, fixed interest rate short-term loans from counterparties other than ADIs, debt securities with a residual term to maturity of more than one year, variable and fixed interest rate loans and borrowings from Australian residents with a residual term to maturity of more than one year, interest accrued but not yet paid, interest received but not yet earned, unrealised losses on trading derivatives, items in suspense and other liabilities not separately identified above. A loan is reported as short-term if its residual term to maturity is one year or less. ‘Other’ liabilities do not include amounts due to clearing houses. Registered Financial Corporations The data in these tables are derived from returns submitted by corporations registered as Category D (Money Market Corporations) and ‘Other’ under the Financial Sector (Collection of Data) Act 2001. These corporations are known collectively as Registered Financial Corporations (RFCs). Category ‘Other’ includes corporations formerly registered as Category F (Finance Companies), G (General Financiers) and E (Pastoral Finance Companies) under the Financial Corporations Act 1974. In April 2003, responsibility for the collection of financial statistics from RFCs was transferred to APRA. Previously, these data were collected by the RBA under the now repealed Financial Corporations Act 1974. The introduction of new reporting forms in April 2003 has led to some significant breaks in series and affected definitions and categories shown for these institutions. There are other breaks from time to time in the historical data due to changes in the number of reporting corporations (refer to part (c) of Technical Notes to Tables). Details of data reported by individual corporations are confidential. Since December 1999, the collections cover RFCs whose assets in Australia (including related corporations) exceed $50 million. Prior to December 1999, this threshold was set at $5 million. This change resulted in breaks in all series covering RFCs; see part (c) of the Technical Notes to Tables for details. The collection of statistics from the authorised money market dealers (formerly Category C corporations under the Financial Corporations Act 1974) ceased from August 1996; refer part (c) of the Technical Notes to Tables. From April 2003, the data in Tables B.9 and B.10 are derived from RRF 320.0: Statement of Financial Position collected by APRA. Prior to April 2003, the data were derived from the FCA forms: D1, E1, F1 and G1 which were collected by the RBA. For each of the tables reporting RFC statistics, there is a set of common terms. Exceptions to these common terms are highlighted in the notes for the relevant tables. Common terms: ‘AFIs’ refers to banks, credit unions, building societies, SCCIs, RFCs and the RBA. From April 2003, ‘Cash and liquid assets – Cash and balances with AFIs’ includes cash and deposits and placements with AFIs. Prior to April 2003, this series includes cash and deposits and placements with banks and RFCs. From April 2003, ‘Cash and liquid assets – Other’ includes gold bullion and deposits and placements with clearing houses and other (non-AFI) financial institutions. Prior to April 2003, this series includes cash and deposits and placements with AFIs. Prior to April 2003, this series includes cash and deposits and placements with banks and RFCs. From April 2003, ‘Cash and liquid assets – Other’ includes gold bullion and deposits and placements with clearing houses and other (non-AFI) financial institutions. Prior to April 2003, this series includes deposits and placements with all institutions other than banks and RFCs. This series also includes placements with authorised money market dealers prior to August 1996. ‘Trading and investment securities – Debt’ includes commercial paper and promissory notes, bills of exchange and all other debt securities held by all counterparties. ‘Loans and advances – Household’ includes housing and other personal loans to households.
From April 2003, ‘Loans and advances – Business’ includes loans to the following counterparties: private trading corporations, private unincorporated businesses, public nonfinancial corporations, community service organisations and other (non-AFI) financial institutions. Prior to April 2003, this series includes loans to all counterparties other than households and RFCs, and also includes bills of exchange accepted by the reporting corporation. From April 2003, ‘Loans and advances –AFIs’ includes loans to AFIs. Prior to April 2003, this series only includes loans to RFCs (loans to other AFIs are included in ‘Loans and advances – Business’). From April 2003, ‘Borrowings from residents – Borrowings from AFIs’ includes deposits and placements due to AFIs and short-term loans from ADIs. Prior to April 2003, this series includes borrowings from banks and related RFCs. From April 2003, ‘Borrowings from residents – Deposits and placements’ includes deposits and placements due to the following counterparties: private trading corporations, private unincorporated businesses, public non-financial corporations, community service organisations and other (non-AFI) financial institutions. From April 2003, ‘Borrowings from residents – Other’ includes borrowings by the issue of promissory notes, bills of exchange and other debt securities, short-term loans from non-ADIs and all long-term loans. Prior to April 2003, this series includes borrowings from all counterparties other than banks and related RFCs, and borrowings by the issue of promissory notes, debentures, unsecured notes and bills of exchange accepted by banks. B.9 Money Market Corporations – Selected Liabilities and Assets See notes for Registered Financial Corporations, above. All series under ‘Loans and advances’ include finance lease receivables. B.10 Finance Companies and General Financiers – Selected Liabilities and Assets See notes for Registered Financial Corporations, above. ‘Loans and advances – Household’ excludes finance lease receivables. ‘Loans and advances – Business’ excludes finance lease receivables. ‘Loans and advances –AFIs’ excludes finance lease receivables. International Banking Statistics In March 2003, banks and selected Registered Financial Corporations (RFCs) began reporting their international assets, liabilities and country exposures to APRA in ARF/RRF 231 International Exposures. This return is the basis of the data provided by Australia to the Bank for International Settlements (BIS) for its International Banking Statistics (IBS) data collection. There are two sets of IBS data: locational data, which are used to gauge the role of banks and financial centres in the intermediation of international capital flows; and consolidated data, which can be used to monitor the country risk exposure of national banking systems. All banks operating in Australia complete ARF 231. However, only those larger RFCs with sizeable overseas assets and/or liabilities complete RRF 231. In Tables B.11–B.13, bank and RFC positions are reported in Australian dollars. Non-A$ denominated positions have been converted to Australian dollars using an appropriate end-quarter exchange rate, so changes in reported positions between quarters are due not only to changes in stocks but also valuation gains or losses due to exchange rate changes. Additional IBS data for Australia are also available on the RBA’s website (). B.11 Banks and Registered Financial Corporations (RFCs) – International Banking Statistics Reported in the upper panel are locational data on international assets and liabilities, which comprise loans and deposits, securities and other assets and liabilities vis-à-vis non-residents in all currencies and vis-à-vis residents in foreign currency. The main balance sheet items included as claims (i.e. assets) are deposits and balances placed with banks, loans and advances to banks and non-banks and holdings of securities. The main liabilities include deposits and loans received from banks and non-banks. Reporting entities’ own issues of securities in international markets are also included as liabilities. (See notes to Table B.12 for more detail on the types of assets and liabilities included.) All assets are reported at market value. While some liabilities are reported at market value,
contractual or nominal values are used where market values are not appropriate. ‘Total banks and RFCs’ is also reported in US$ equivalent amounts, using the end-quarter A$/US$ exchange rate from Table F.11. The locational data presented in Tables B.11 (upper panel) and B.12 may differ from the balance sheet data reported by banks and RFCs in their ARF/RRF 320.0 Statement of Financial Position return to APRA (and published in Tables B.2, B.3, B.9 and B.10). ARF/RRF 231 asks for gross positions to be reported (including on-balance sheet derivatives). However, in ARF/RRF 320.0, derivative positions can be reported on a net asset or net liability basis. This difference is particularly relevant in the case of foreign currency derivative positions with residents in Australia (included in other assets and other liabilities in the locational data). The lower panel of Table B.11 presents consolidated data on the international exposures of banks and RFCs operating in Australia. The types of assets included here are as per the locational data in Table B.12. However, the consolidated data differ from the locational data in three key ways: foreign currency positions with Australian residents are excluded (whereas they are included in the locational data); claims between different offices of the same institution (e.g. between the head office and its subsidiary) are netted (whereas positions, including intra-group positions, are reported on a gross basis in the locational data); and onbalance sheet derivatives are not included in international claims or foreign claims, but are included separately under ‘Derivatives’ in Table B.13. Foreign-owned reporting entities report on an unconsolidated basis. The data are split by type of exposure. ‘International claims’ refers to all cross-border claims plus foreign offices’ local claims on residents in foreign currencies; foreign claims refers to all cross-border claims plus foreign offices’ local claims on residents in both local and foreign currencies; immediate risk claims cover claims based on the country where the immediate counterparty resides; and ultimate risk claims cover immediate exposures adjusted (via guarantees and other risk transfers) to reflect the location of the ultimate counterparty/risk. Foreign offices include the overseas branches, subsidiaries and joint ventures of a bank or RFC. Risk transfers are those transfers of risk from the country of the immediate borrower to the country of ultimate risk as a result of guarantees, collateral, and where the counterparty is a legally dependent branch of a bank headquartered in another country. The risk reallocation also includes transfers between different economic sectors (banks, public sector and nonbank private sector) in the same country. The risk reallocation also includes loans to Australian borrowers that are guaranteed by foreign entities and therefore represent outward risk transfers from Australia, which increase the ultimate exposure to the country of the guarantor. Similarly, foreign lending that is guaranteed by Australian entities is reported as an inward risk transfer to Australia, which reduces the ultimate exposure to the country of the foreign borrower. Foreign claims on an ultimate risk basis are shown for the following types of reporting entity: Australian-owned banks (i.e. those with their parent entity legally incorporated in Australia); foreign subsidiary banks; branches of foreign banks; RFCs; and Australian-owned entities (i.e. Australian-owned banks and RFCs). ‘Foreign claims (ultimate risk basis) – Aust-owned entities’ is also reported in US$ equivalent amounts, using the end-quarter A$/US$ exchange rate from Table F.11. B.12 International Assets and Liabilities of the Australian-located Operations of Banks and RFCs Data are shown for a selected group of countries which account for the bulk of the total. Similar data for other countries are also available on the RBA’s website. The positions by country are summed to produce a ‘Total non-residents’ figure which represents reporting entities’ total positions with offshore counterparties in all currencies. The positions shown for Australia are positions with residents in foreign currency. ‘Loans’ comprise those financial assets that are created through the lending of funds by a creditor (lender) to a debtor (borrower) and that are not represented by negotiable securities. ‘Debt securities held’ are all negotiable short- and long-term debt instruments (including negotiable certificates of deposit, but excluding equity shares, investment fund units and warrants). Also included are those international debt securities held in an entity’s own name but on behalf of third parties as part of trustee business. Debt securities held on a purely custodial basis for customers and debt securities acquired in the context of securities lending
transactions without cash collateral are not included in the data on holdings of debt securities. The borrowing of securities that are subsequently sold to third parties may result in negative holdings of securities. ‘Other assets’ mainly comprise equity shares (including mutual and investment fund units and holdings of shares in a reporting entity’s own name but on behalf of third parties), participations, on-balance sheet derivative contracts and working capital supplied by head offices to their branches abroad. Negative asset positions may be reported due to short selling of securities acquired in the context of repo or bond lending transactions. Reporting entities’ holdings of international notes and coin that are in circulation and commonly used to make payments are recorded as claims in the form of loans and deposits. Loans that have become negotiable de facto are classified under debt securities. ‘Deposits’ comprise all claims reflecting evidence of deposit – including non-negotiable certificates of deposit – that are not represented by negotiable securities. Thus, loans and deposits include interbank borrowings, loans and inter-office balances, foreign trade-related credits, international loans received and granted, and deposits received and made on a trust basis. Sale and repurchase transactions (repos) involving the sale of assets (e.g. securities and gold) with a commitment to repurchase the same or similar assets, financial leases, promissory notes, non-negotiable debt securities, endorsement liabilities arising from bills rediscounted abroad and subordinated loans (including subordinated non-negotiable debt securities) are also included as loans and deposits. ‘Debt securities issued’ are all negotiable short- and long-term debt instruments (including subordinated issues and issues in an entity’s own name but on behalf of third parties). The classification as international debt securities issued is determined by the place and currency of issue rather than the residence of the issuer as in the case of reporting entities’ holdings of debt securities. This criterion is used due to the difficulty of determining the residence of the current holder of a negotiable instrument. ‘Other liabilities’ include on-balance sheet derivative contracts and working capital received by local branches from their head offices abroad. Accrued interest and items in the course of collection are also included in other assets and liabilities. B.13 International Exposures of the Globally Consolidated Operations of Australianowned Banks and RFCs This table summarises the country exposures of Australian-owned banks and selected RFCs. This is a smaller reporting pool than in some of the series reported in Table B.11 (lower panel) which are based on all banks and RFCs reporting ARF/RRF 231 data. The types of assets included here are as per those reported in Tables B.11 and B.12, except that the data are consolidated for Australian-owned reporting entities (i.e. includes the claims on countries of all the offices worldwide of entities with head offices in Australia, but excludes positions between different offices of the same group). Consolidated data only include positions with non-residents (in any currency). Data are shown for a selected group of countries which account for the bulk of the total. Similar data for other countries are also available on the RBA’s website. Immediate risk claims cover exposures on an immediate counterparty location basis. Ultimate risk claims cover immediate exposures adjusted (via guarantees and other risk transfers) to reflect the location of the ultimate counterparty/risk. In the maturity distribution, the shortest maturity bracket includes deposits that are repayable on demand, overdue items and overdrafts. ‘International claims’ represent cross-border claims in all currencies and foreign offices’ local claims in non-local currencies (which would include, for example, US$ claims on New Zealand residents by the New Zealand subsidiary of an Australian-owned bank). Also shown in the top panel are the local currency claims on local residents by the foreign offices of reporting entities (for example, the NZ$ claims on New Zealand residents by the New Zealand subsidiary of an Australian-owned bank). These local currency claims are added to international claims to produce foreign claims. International organisations are included in the ‘Public sector’ category in the consolidated data (while in the locational data they can be reported as either bank or non-bank depending on the particular organisation). Official monetary authorities (central banks or similar national and
international bodies, such as the BIS) are also included in the public sector in the consolidated data (but are treated as banks in the locational data, B.12). Publicly-owned entities (other than banks) are classed in the ‘Non-bank private sector’ in the consolidated data (and as nonbanks in the locational data). The ‘Net risk transfer’ shown does not sum to zero mainly due to risk transfers into and out of Australia. In several cases, risk is transferred out of the countries listed and into Australia hence becoming, in effect, domestic exposures (and reducing foreign claims on an ultimate risk basis). Similarly, the risk associated with what were initially domestic exposures has in several cases been transferred, via guarantees and other risk transfers, to other countries (thereby increasing foreign claims on an ultimate risk basis). The total risk transfer amount in Table B.13 is not comparable to the risk transfer amount reported for Australia in the lower panel of Table B.11 as the former covers only Australian-owned entities while the latter is for all reporting entities. ‘Cross border’ positions are those positions with bank and non-bank counterparties located in a country other than the country of residence of the reporting entity (or its affiliate). This would include, for example, lending by a bank in Australia to a company in France; it would also include loans by that bank’s subsidiary in the UK to a company in France. ‘Local’ claims are those claims of overseas affiliates of the reporting entity on the residents of the countries in which they are located. These are largely in local currencies but include nonlocal currencies as well. In this table, derivatives are not included in international claims or in foreign claims. On- and off-balance sheet derivatives are shown separately as a memo item. ‘Derivatives’ are those on- and off-balance sheet derivative exposures (to the country of ultimate risk) which are in a positive market value position. Negative market values of derivative contracts represent financial liabilities and are therefore excluded from the reporting of financial claims. The data mainly comprise forwards, swaps and options relating to foreign exchange, interest rate, equity, commodity and credit derivative contracts. Credit derivatives, such as credit default swaps and total return swaps, are included in ‘Derivatives’ if they belong to the trading book of a protection-buying reporting entity. Credit derivatives which belong to the banking book are reported as risk transfers by the protection buyer. All credit derivatives are reported as guarantees by the protection seller. ‘Guarantees’ refers to contingent liabilities arising from an irrevocable obligation to pay to a third-party beneficiary when a client fails to perform some contractual obligations. They include: secured, bid and performance bonds; warranties and indemnities; confirmed documentary credits; irrevocable and stand-by letters of credit; acceptances; and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit derivative contracts. ‘Credit commitments’ covers arrangements that irrevocably obligate an institution, at a client’s request, to extend credit in the form of: loans; participation in loans, lease financing receivables, mortgages, overdrafts or other loan substitutes; or commitments to extend credit in the form of the purchase of loans, securities, or other assets (e.g. back-up facilities including those under note issuance and revolving underwriting facilities). Other Financial Institutions B.14 Life Insurance Offices – Statutory Funds From June 1988, the data are derived from ABS Cat No 5655.0. Prior to June 1988, the data are from Appendix H in the Quarterly Statistical Bulletin published by the Insurance and Superannuation Commission and prior to 1984, the data are from ABS Cat No 5621.0, a discontinued publication. Data prior to June 1988 cover assets in Australia only. B.15 Superannuation Funds – Outside Life Offices From June 1988, the data are derived from ABS Cat No 5655.0. Coverage includes approved deposit funds but excludes assets held ‘within the statutory funds of life offices’ and, prior to December 1988, excludes small funds other than those managed by professional fund managers. From December 1988 inclusive, includes estimates for small directly investing funds and ‘excluded funds’. For longer run annual data on some items refer to the Reserve Bank Bulletin, December 1991 or Australian Economic Statistics 1949-50 to 1994-95. B.16 Public Unit Trusts Public unit trust data by type of asset and trust are derived from ABS Cat No 5655.0. The
definition of public unit trusts does not include cash management trusts; the latter are covered separately in ABS Cat No 5655.0. From June 1998 inclusive, the ABS ceased identifying data on domestic and international equity trusts separately, and included listed trading trust data with listed property trust data permitting alignment with Australian Stock Exchange classifications. Listed equity and property trusts data for some quarters are not released by the ABS due to confidentiality reasons associated with the small number of listed trusts. B.17 Cash Management Trusts The data are derived from ABS Cat No 5655.0. ‘Weighted-average maturity in days’ is at end of period. B.18 Managed Funds The data are derived from ABS Cat No 5655.0, which shows details of assets held by managed funds on both an ‘Unconsolidated’ and ‘Consolidated’ basis and by type of managed fund from June 1988. Data on total assets of the different types of funds are shown on an ‘Unconsolidated’ basis and thus include funds cross-invested with other funds. Superannuation funds held in statutory funds of life insurance offices are separately identified and are sourced from APRA. The series for total assets of managed funds on an ‘Unconsolidated’ basis is equal to the sum of the components shown. The series for total assets on a ‘Consolidated’ basis eliminates identified cross-investment between the various funds. ABS Cat No 5655.0 contains much more detail on assets of managed funds than can be shown in Table B.18 and related tables. B.19 Securitisation Vehicles The data are detailed series underlying the Financial Accounts, ABS Cat No 5232.0. They cover special purpose vehicles registered or incorporated in Australia to securitise selected assets, and whose issues are independently rated by a recognised rating agency. See ‘Changes to Tables’ in the December 1996 issue of the Bulletin for a further discussion of securitisation vehicles. Some data prior to June 1993 are partly estimated. ‘Mortgages’ include both residential and non-residential mortgages. ‘Other loans and placements’ include operating lease and lease finance receivables, secured loans to originators and loans secured by other types of assets. Holdings of ‘Asset-backed bonds’ refers to individual securitisation vehicles’ holdings of assetbacked bonds issued by other securitisation vehicles. ‘All other assets’ include cash and deposits with Australian banks and corporations registered under the Financial Sector (Collection of Data) Act 2001 and all other claims not already included. ‘Other liabilities’ include loans and advances from Australian banks, corporations registered under the Financial Sector (Collection of Data) Act 2001 and other financial institutions, along with all other liabilities not already included.
Non-financial Sectors
B.20 Selected Assets and Liabilities of the Private Non-financial Sectors The selected non-financial assets data are sourced from the RBA. These data relate to households only. ‘Consumer durables’ are tangible assets, other than dwellings, that generally have a life of a year or more. These include motor vehicles, furnishings and other household equipment. To estimate the market value of consumer durables owned by households, the stock of consumer durables is valued by an appropriate price series. This estimation is performed by the RBA based on data sourced from the ABS. ‘Dwellings’ are considered to be private dwellings owned by households in all areas of Australia. These include houses, semi-detached dwellings, townhouses, terrace houses, flats, units and apartments. The market value of the stock of household dwellings is estimated by multiplying the dwelling stock by an Australia-wide mean dwelling price series. The dwelling stock is estimated by combining Census data and the number of new dwellings completed each quarter (sourced from the ABS) with an adjustment for estimated demolitions. The dwelling price series is constructed from a number of sources. The financial assets and liabilities data are derived from ABS Cat No 5232.0, Tables 2 and 15. The sectoral classification is on a national accounts basis and differs slightly from that in the
preceding tables. In particular, the household sector includes unincorporated enterprises and non-profit institutions serving households. Identified claims between transactors in the same sector are excluded. The data were upgraded in 1998/99 to comply with SNA93 standards and are only available back to June 1988. ‘Reserves of life offices and pension funds’ are equal to total assets of life offices, superannuation funds and friendly societies, less liabilities of these institutions other than to policyholders and fund members. Ownership of these net assets is imputed to the household sector. ‘Unfunded superannuation claims’ are liabilities of state, local and national governments to public sector employees in respect of unfunded retirement benefits. ‘Loans from banks’ are taken directly from the asset side of Table 6 in the above ABS catalogue and exclude bills of exchange etc. Some ‘All other’ categories are derived as residuals, although details of most of the components are shown in the respective ABS tables. B.21 Household Finances – Selected Ratios Data for this table are seasonally adjusted, unless otherwise noted. Debt refers to total household debt as calculated by the RBA and is the sum of housing and other personal debt, including securitised debt. Debt excludes debt owed by unincorporated enterprises. These data are adjusted for the effects of breaks in the series, recorded in the Technical Notes to Tables. Assets refers to the total of dwelling assets, consumer durables and financial assets as reported in Table B.20. ‘Financial assets’ includes financial assets of unincorporated enterprises and is not seasonally adjusted. See the notes to Table B.20 for the sources and derivation of these items. ‘Debt to assets’ refers to the ratio of total household debt to total household assets. ‘Housing debt to housing assets’ refers to the ratio of housing debt (including securitisations) to total dwelling assets. For the purpose of calculating ‘Assets to disposable income’ and ‘financial assets to disposable income’, ‘disposable income’ includes gross mixed income earned by unincorporated enterprises and is measured before the deduction of net interest payments. Data on disposable income are sourced from the quarterly national accounts (ABS Cat No 5206.0) and are reported in annual terms. ‘Debt to disposable income’ is the ratio of total household debt to household disposable income. ‘Debt to disposable income – Housing’ is the ratio of housing debt (including securitisations) to household disposable income. ‘Debt to disposable income – of which: Owner-occupier’ is the ratio of owner-occupier housing debt (including securitisations) to household disposable income. ‘Interest payments to disposable income’ is the ratio of interest payments on housing and other personal debt to disposable income. ‘Interest payments to disposable income – Housing’ is the ratio of interest payments made on housing loans to disposable income. Interest payments include charges for financial intermediation services, indirectly measured (FISIM). Data are sourced from the quarterly national accounts and from unpublished ABS data. For the purpose of calculating the ‘Debt to disposable income’ and ‘Interest payments to disposable income’ ratios, disposable income excludes gross mixed income earned by unincorporated enterprises and is measured before the deduction of interest payments. Data are sourced from the quarterly national accounts. For the debt to disposable income ratio, data are reported in annual terms. Payments System C.1 Credit and Charge Card Statistics This table covers general-purpose credit cards and charge cards issued to individuals or businesses by reporting financial institutions in Australia. Reporting institutions include most Australian banks, foreign banks operating in Australia, building societies and credit unions, and certain other non-bank providers of card services. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. ‘Number of accounts’ refers to credit card and charge card accounts held as at the last day of the month. Each account is counted only once even if it is accessible by multiple cards or a multi-function card. ‘Cash advances’ means transactions in which cash is received by the cardholder, typically at an ATM or financial institution branch, and billed to a credit or charge card account as a cash
advance. Prior to March 2008, data include some BPAY transactions. ‘Purchases’ means transactions made during the month to obtain goods or services, other than those treated as cash advances for billing purposes. Prior to March 2008, data include some BPAY transactions. ‘Repayments’ is all repayments of credit or charge card account balances owed, including payments of interest, fees and other charges billed to the account. ‘Balances – Accruing interest’ means any part of total balances on which the customer has been or will be charged interest. From March 2008, this also includes any part of total balances on which the customer has been or will be charged a penalty fee. ‘Balances – Total’ is the total value of outstanding balances owed on credit and charge cards, whether or not incurring interest charges or penalties, as at the last day of the month. This item includes balances not yet billed, balances billed but not yet due, and balances due but not yet paid. This item does not include any amounts on cards where the account has a credit balance. ‘Credit limits’ is the value of all approved limits for credit cards, whether used or unused, as at the last day of the month. Those charge cards which do not have explicit limits are excluded. C.2 Market Shares of Credit and Charge Card Schemes This table reports monthly market share data relating to the Bankcard, MasterCard, Visa, American Express and Diners Club card schemes. The Bankcard scheme closed in January 2007. The figures for ‘Bankcard, MasterCard and Visa’ for months up to and including January 2007 include Bankcard data. The table covers general-purpose credit cards and charge cards issued to individuals or businesses by reporting institutions in Australia. The ‘Bankcard, MasterCard and Visa’ market shares include debit card transactions processed through the MasterCard or Visa networks. Reporting institutions include most Australian banks, building societies and credit unions, and certain other non-bank providers of card services. Data in this table are sourced from the monthly retail payments statistics card acquiring return. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. Purchases include card-present transactions arising from electronic point of sale and voucher-based purchases, and card-not-present transactions arising from internet, mail or telephone purchases; more detail on these categories can be found in the Retail Payment Statistics Collection on the Reserve Bank website at . The market shares at the top of the table are for the entire financial year. C.3 Merchant Fees for Credit and Charge Cards This table reports average merchant fees paid by merchants to acquiring institutions as a per cent of purchase value. These fees are net of rebates and GST and include fees arising from general-purpose credit cards and charge cards issued to individuals or businesses under the Bankcard, MasterCard, Visa, American Express and Diners Club card schemes. The ‘Bankcard, MasterCard and Visa’ merchant fees include fees arising from the debit card transactions processed through the MasterCard or Visa networks. The Bankcard scheme closed in January 2007. The figures for ‘Bankcard, MasterCard and Visa’ for quarters up to and including the March quarter 2007 include Bankcard data. Acquirers report merchant fee income that arises from domestic merchants from card transactions initiated by domestic and foreign cardholders. Data in this table are sourced from the monthly retail payments statistics card acquiring return, and a separate, quarterly merchant fee survey completed by nine acquirers of credit and charge card transactions. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. ‘Merchant service fees’ include ad valorem or flat fees that relate to the value or number of transactions acquired. ‘Other’ fees include annual fees, terminal fees, terminal rentals, monthly fees, joining fees and other fees or associated costs charged to merchants. Purchase value includes the value of total card-present transactions arising from electronic point of sale and voucher-based purchases, and the value of total card-not-present transactions arising from internet, mail or telephone purchases; more detail on these categories can be found in the Retail Payment Statistics
Collection on the Reserve Bank website at . The average merchant fees at the top of the table are for the entire financial year. C.4 ATM Cash Withdrawals This table covers transactions made to obtain cash from automated teller machines (ATMs) initiated using a proprietary or scheme debit card issued by the reporting institution. Reporting institutions are Australian banks, foreign banks operating in Australia, and most building societies and credit unions. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. ‘At own ATMs’ means those domestic ATM cash withdrawals initiated using a debit card at an ATM or cash dispenser where the card used to initiate the transaction is issued by the same institution that owns the ATM or acquires the transaction. ‘Total’ covers domestic and international ATM cash withdrawals initiated using a debit card at an ATM or cash dispenser. Figures reported for the value of ATM cash withdrawals do not include the value of any charges imposed by ATM owners on cardholders at the time a transaction is undertaken. C.5 Debit Card Statistics This table covers transactions on deposit accounts initiated using a proprietary or scheme debit card issued by the reporting institution. Reporting institutions are Australian banks, foreign banks operating in Australia, and most building societies and credit unions. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. ‘Number of accounts’ refers to deposit accounts/facilities that can be accessed by a debit card as at the last day of the month. ‘Purchase only transactions – Scheme debit’ covers domestic transactions to obtain only goods and services using debit cards which are processed through a network operated by one of the international card chemes, plus all international debit card transactions. ‘Purchase only transactions – EFTPOS’ covers domestic transactions to obtain only goods and services using proprietary debit cards at point-of-sale terminals. ‘Purchase only transactions – Total’ covers domestic transactions to obtain only goods and services using debit cards, plus all international debit card transactions. ‘Combined transactions’ means domestic transactions to obtain both goods and services and cash, in one transaction, using debit cards at point-of-sale terminals. ‘Cash-out only transactions’ means domestic transactions to obtain only cash from a merchant using debit cards at point-of-sale terminals. C.6 Cheques and Direct Entry Payments ‘Cheques’ covers cheques drawn on financial institutions in Australia. ‘Direct entry payments’ covers electronic transfers through the direct entry system, which is used for bulk or batch-processed payment transfers between deposit accounts, typically on a next-day settling basis. This includes transfers through APCA’s Bulk Electronic Clearing System, and transfers between account holders at the same financial institution where the transaction is settled internally. Reporting institutions are Australian banks, foreign banks operating in Australia, most building societies and credit unions, one non-bank provider of card services, and the Reserve Bank of Australia. Series in this table are not seasonally adjusted, and they are subject to revision from time to time. ‘Customer cheques’ means all cheques written by individuals or business customers. ‘Financial institution cheques’ means cheques drawn by a financial institution on itself or on the issuing institution’s own account with the drawee bank. ‘Credit transfers’ means payments where a payer provides instructions to its financial institution to transfer money from the payer’s deposit account to another account at the same or a different institution. From March 2008, this includes all BPAY transactions. Real-time gross settlement system payments are not included. ‘Debit transfers’ means direct debit payments where a payee provides instructions to its financial institution to debit the payer’s deposit account at the same or a different institution and credit the payee’s account. C.7 Real-time Gross Settlement Statistics
Real-time Gross Settlement (RTGS) means that transactions are settled individually using credit balances in financial institutions’ Exchange Settlement Accounts at the Reserve Bank. RTGS commenced from 22 June 1998 after a seven-week phase-in period; prior to that date, transactions were settled on a net basis at 9.00 am on the next business day. Transactions initiated in three systems are settled on an RTGS basis via the Reserve Bank Information and Transfer System (RITS). These systems are: the SWIFT Payment Delivery System (PDS), a cash transfer system; Austraclear, an electronic registry and securities settlement system for semi-government and private sector debt securities, and Commonwealth Government securities (CGS) from 25 February 2002; and RITS, which serves as Australia’s RTGS system, and also served as an electronic registry and settlement system for CGS prior to 25 February 2002. The SWIFT PDS and Austraclear are often referred to as ‘feeder systems’ to RITS because interbank settlement details of transactions in these systems are fed into RITS for settlement. Data for ‘RITS’, the ‘SWIFT PDS’ and ‘Austraclear’ exclude intrabank transactions (i.e. transactions that do not require interbank settlement because the counterparties to the transactions have the same settling Member). These are shown separately for information where the transactions are passed to RITS for processing of automated advices to the paying Member. Also excluded from RITS figures are payments in the Government Direct Entry Service (GDES), payments associated with non-callable deposits, registry interest and maturities and ESA interest. ‘RITS’ and ‘Austraclear’ figures include both cash transfers and securities transactions, including interest and maturity payments, but exclude intra-day repurchase transactions with the Reserve Bank. ‘Intra-day repos’ show the total funds obtained from the Reserve Bank via intra-day repurchase transactions involving both CGS and non-CGS (first leg of transactions only). ‘Intrabank’ transactions are where the paying and receiving Member are the same and the transactions are sent to RITS for processing of information advices to the paying Member. ‘Batch settlement’ figures show transactions from the 9:00 am batch and batches submitted for settlement using the batch feeder facility. Detailed information and annual data on RITS, Austraclear and the SWIFT PDS are available in Payment Systems in Australia (available at ). C.8 Points of Access to the Australian Payments System ‘Branches’ include the head office of each financial institution. In 2001 APRA introduced a new ‘Points of Presence’ data collection. Figures for the number of branches drawn from that collection have been used since 2001. They are not directly comparable with those for earlier years. ‘Agencies’ include agencies of financial institutions staffed by non-institution employees (e.g. postmasters, storekeepers). Excludes school agencies and Bank@Post agencies. APRA’s new ‘Points of Presence’ data collection does not include figures for the number of agencies. ‘Non-banks’ are building societies and credit unions. ‘Bank@Post’ (formerly giroPost) provides a limited range of financial services at certain Australia Post offices on behalf of member financial institutions. At June 2008, Bank@Post was available at 3 305 electronically linked post offices throughout Australia; member institutions comprised Adelaide Bank, Bank of Queensland, BankWest, Bendigo Bank, Citibank, Commonwealth Bank, HSBC Bank Australia, Members Equity, National Australia Bank, St. George Bank, B&E Ltd, GE Capital Finance Australia, Heritage Building Society, Home Building Society, IMB Ltd, Maitland Mutual Building Society, RAMS Home Loans, Wide Bay Australia Ltd and 56 credit unions. ‘ATM’ – Automated Teller Machine (including cash dispensers). From 2003, includes ATMs owned by third parties (e.g. retailers). ‘EFTPOS’ – Electronic funds transfer at point of sale (including credit authorisation terminals and credit authorisation terminals with capture facilities). Money and Credit Statistics Financial aggregates are compiled by the RBA from data primarily supplied by banks and NBFIs (which form the basis of tables in section B) and also incorporate data supplied by the ABS.
Up to and including June 2000, figures for banks are averages of weekly (Wednesday) figures and figures for NBFIs are averages of end-month figures for the current and previous months. From July 2000 figures for both banks and NBFIs are end-month. Prior to January 1989, figures for savings bank deposits are averages of end-month or near end-month figures for the current and previous months. The data have breaks due to changes from time to time in the number of reporting institutions and other reporting changes (refer to Technical Notes to Tables). Seasonal adjustment is by the RBA, except where noted. D.1 Growth in Selected Financial Aggregates Growth rates are reported in seasonally adjusted terms and adjusted for the effects of breaks in the series, recorded in the Technical Notes to Tables. Growth rates for credit are based on data that include securitised loans and other housing loans provided by non-AFIs. Prior to April 2003, ‘Business’ was in part derived as a residual item and may have contained some non-business lending. D.2 Lending and Credit Aggregates Lending and credit to the private non-financial sector (and public trading enterprises) or, where stated, the government sector, by all financial intermediaries. These series are subject to breaks, which can affect their interpretation. The breaks are detailed in the ‘Technical Notes to Tables’. ‘Loans and advances by banks’ includes all bank loans and advances to the private sector (including public trading enterprises) on the balance sheets of banks, net of loans to NBFIs. ‘Loans and advances by NBFIs’ includes all loans and advances to the private sector (including public trading enterprises) by building societies, credit unions, SCCIs, RFCs (money market corporations, finance companies, pastoral finance companies and general financiers) and cash management trusts on the balance sheets of NBFIs, net of loans to banks. Until March 2002, ‘Bills on issue’ includes all bills of exchange accepted or endorsed by banks. From March 2002 until April 2003, this series only includes selected bills of exchange accepted or endorsed by banks. From April 2003, this series also includes all bills of exchange accepted or endorsed by NBFIs (prior to April 2003, bills of exchange accepted or endorsed by NBFIs were included in ‘Loans and advances by NBFIs’ and ‘Loans and advances by AFIs’). ‘Narrow credit’ includes loans and advances by AFIs plus ‘Bills on issue’. ‘Credit (incl securitisations)’ includes ‘narrow credit’, securitised loans and other housing loans provided by non-AFIs. ‘Owner-occupier housing’ refers to loans to individuals for owner-occupied housing, and finance for the purchase of land where construction of a dwelling for owner occupation is expected. It includes owner-occupier housing loans outstanding on the balance sheets of AFIs, securitised owner-occupier housing loans and other owner-occupier housing loans provided by non-AFIs. ‘Investor housing’ refers to loans to individuals for investment (i.e. non-owner-occupied) housing, and finance for the purchase of land where construction of a dwelling for non-owner occupation is expected. It includes investor housing loans outstanding on the balance sheets of AFIs, securitised investor housing loans and other investor housing loans provided by nonAFIs. ‘Other personal’ includes personal loans outstanding on the balance sheets of AFIs, and securitised personal loans. ‘Business’ includes ‘Bills on issue’, loans outstanding to businesses on the balance sheets of AFIs, and securitised business loans. Prior to April 2003, ‘Business’ was in part derived as a residual item and may have contained some non-business lending. ‘Lending to the government sector by AFIs’ comprises AFI holdings of Commonwealth Government securities, local and semi-government and other public authority securities, and AFI lending through loans and overdrafts. From April 2003, this series excludes holdings of Commonwealth Government securities by RFCs. More detail on bank lending to the government sector is presented in Table D.5. D.3 Monetary Aggregates ‘Currency’ comprises holdings of notes and coins by the private non-bank sector. Bank deposits exclude Australian and State Government and inter-bank deposits.
‘M1’ is defined as currency plus bank current deposits of the private non-bank sector. ‘Deposits with non-bank ADIs’ includes deposits with CUBS and SCCIs, less currency and deposits with other ADIs. ‘M3’ is defined as M1 plus all other ADI deposits of the private non-ADI sector. ‘Non-deposit borrowings from private sector by AFIs’ includes non-deposit borrowings (other than from AFIs) by ADIs, RFCs (money market corporations, finance companies, pastoral finance companies and general financiers) and cash management trusts. Prior to August 1996, when AMMDs’ accreditation was revoked, these data include borrowings by AMMDs from the private sector and exclude borrowings by other AFIs from AMMDs. ‘Broad money’ is defined as M3 plus non-deposit borrowings from the private sector by AFIs, less the holdings of currency and bank deposits by RFCs and cash management trusts. ‘Money base’ is defined as holdings of notes and coins by the private sector plus deposits of banks with the Reserve Bank and other Reserve Bank liabilities to the private non-bank sector. ‘Offshore borrowings by AFIs’ comprises net foreign currency and Euro-A$ borrowings. Prior to April 2003, this series excluded Euro-A$ borrowings by NBFIs. D.4 Debt Securities Outstanding Unless otherwise stated, data on short-term securities include commercial paper and bonds with an initial term to maturity of one year or less, sourced from Austraclear Limited. Data for short-term securities issued by banks within the ‘banks and other financial corporations’ series also include bank bills and certificates of deposit sourced from APRA. Data prior to July 2000 are averages of weekly figures for the month. Quarterly data on asset-backed securities (both short-term and long-term) are consistent with the ABS data reported in Table B.19, which excludes self-securitisations of residential mortgages by ADIs. Where ABS data are not available, these data are estimates calculated by the RBA. Data on outstanding bonds issued by other non-government entities are compiled by the RBA from various market sources. The data are broadly consistent with those published by the ABS in the financial accounts. However, the financial accounts data are calculated on a market-value basis, whereas the RBA data are on a face-value basis. The ABS data also include debentures of finance companies, whereas the RBA data do not. Data on notes and bonds issued by the Australian Government are consistent with those presented in Table E.3. They include notes and bonds acquired by the Australian Government. Data on state government bonds are sourced from the ABS. The series of residential mortgage securities includes short-term and long-term securities issued in Australia and offshore. The quarterly data are consistent with the mortgage series in Table B.19, except the series in Table B.19 includes commercial mortgages. The series of residential mortgage securities in Table D.4 is based on quarterly ABS data from ABS Cat No 5232.0.55.001, which excludes self-securitisations of residential mortgages by ADIs. Where ABS data are not available, these data are estimates calculated by the RBA. D.5 Bank Lending Classified by Sector All data exclude securitisations and lending to non-residents. For ‘Lending to government’, ‘Other’ includes credit cards. ‘Persons’ refers to individuals who conduct their affairs with the bank on a non-business basis. ‘Housing – Owner-occupiers’ excludes housing loans of the former trading banks prior to January 1989. ‘Housing – Investors’ refers to loans to individuals for investment (i.e. non owner-occupied) housing, and finance for the purchase of land where construction of a dwelling for non-owner occupation is expected. Figures not separately identified prior to January 1990; previously included mainly in fixed personal and commercial loans and owner-occupied housing. Prior to November 1993, includes some investment housing lending to business enterprises. ‘Commercial lending’ refers to loans to banks, NBFIs and trading companies, both government and private, unincorporated enterprises and non-profit organisations for use in connection with the business carried on by them. Until 9 August 1996, included loans to authorised short-term money market dealers. From April 2002, ‘Commercial lending – Financial intermediaries’ includes funds advanced through purchases of marketable debt securities.
D.6 Lending Commitments – All Lenders Data in this table are from ABS Cat Nos 5609.0 and 5671.0. Seasonal adjustment is by the ABS. A ‘lending commitment’ is a firm offer to provide finance which has been or is normally expected to be accepted by the borrower. The statistics cover significant lenders only. Significant lenders account in aggregate for at least 95 per cent of the Australian total. From July 1991, ‘owner-occupied housing’ loans include secured revolving credit loans. Commitments for ‘existing dwellings’ include commitments for the purchase of newly constructed dwellings and established dwellings. ‘Refinancings’ includes loans refinanced only by an institution other than the original lender. Data on refinanced loans are not separately available before July 1991. Commitments for ‘alterations and additions’ include loans to owner-occupiers only. Commitments for ‘investment housing’ include refinanced loans. Commitments for ‘existing dwellings’ include commitments for the purchase of dwellings for rent or resale by individuals and others. A ‘fixed commitment’ generally involves a fixed amount for a fixed period for a specific purpose with repayments over that fixed period which reduce the loan, but do not make further finance available. A ‘revolving commitment’ is a credit or borrowing limit. Revolving lines of credit allow borrowers to draw down cumulative funds up to the value of the limit. They generally have no maturity and no fixed repayment schedule. ‘Fixed commercial’ includes the secured loans for ‘investment housing’. D.7 Bank Lending to Business Within each interest band, the interest rate charged on variable-interest rate loans and fixedinterest rate loans includes a margin for credit risk. The cost of loan fees and charges is not included. ‘Bills outstanding’ include acceptance and endorsement facilities. Within each interest rate band, the annual cost of bill finance is expressed as a percentage of the face value of the bill. It includes the bill discount plus certain ongoing fees associated with bill lines. Amounts for bills outstanding include loan facilities on which interest rates are tied to bank bill reference rates. ‘Total credit outstanding’ includes variable and fixed-interest rate loans outstanding plus bills outstanding. Industry categories are based on the ANZSIC groups of industries. ‘New credit approvals’ shows gross new lending commitments to business during the relevant calendar quarter, classified by purpose. Data are subject to series breaks relating to changes in bank reporting and changes in the sample of reporting banks. For example, there was a break in December 1994 when banks started reporting impaired loans in the lowest interest rate bands. Previously they were reported at the rate charged on a ‘good loan’ basis. D.8 Bank Lending to Business – Selected Statistics All figures are compiled from the cross-section data reported quarterly in Table D.7. However, back-data in Table D.8 have been adjusted to reconcile total bank lending to business with data collected under the new statistical reporting regime introduced in March 2002. As a result, the pre-March 2002 components of Table D.7 will not sum to the totals reported in Table D.8. Both tables are internally consistent. ‘Weighted-average interest rates’ are calculated from Table D.7 using the midpoint of each interest band, except for the lowest and highest bands where half a percentage point is deducted and added, respectively. The calculation excludes impaired loans. ‘Data are subject to series breaks relating to changes in bank reporting and changes in the sample of reporting banks. For example, there was a break in December 1994 when banks started reporting impaired loans in the lowest interest rate bands. Previously they were reported at the rate charged on a ‘good loan’ basis. D.9 Rural Debt by Lender Data are based on information supplied by lending institutions. These data are affected from time to time by changes in coverage, particularly as changes in the information systems of lenders allow for more accurate identification of rural loans. From 2006, these series are
subject to breaks, which can affect their interpretation. The breaks are detailed in the Technical Notes to Tables. ‘All banks’ data comprise lending by banks and from 1994 are taken from Table D.8, ‘Bank Lending to Business – Selected Statistics’. From 1994 all bank bill acceptances on behalf of the rural sector are included in these data, while prior to 1994, bank bills held by the four majors are included, though bank bills accepted by the four majors but not held by them were generally not included. The ‘All banks’ series is affected by a number of other changes in coverage and definitions. Notably from 1994, there was a break in bank lending due to the addition of lending for fishing, forestry and hunting. These data are derived from returns collected by APRA under the Financial Sector (Collection of Data) Act 2001. Prior to 1987, the series ‘Pastoral and other finance companies’ only includes data for pastoral finance companies and prior to 1984, included some loans other than to rural producers which were not separately identifiable. From 1987, the series also includes data from other selected finance companies, and from 2003, data from all other finance companies. The ‘Pastoral and other finance companies’ series is derived from returns collected by APRA under the Financial Sector (Collection of Data) Act 2001. ‘Other government’ includes advances made under the War Service Land Settlement and Agricultural Re-establishment Acts and those made from State funds. Prior to 1981, the series includes state banks’ general banking business to the rural sector. Data include government agency business of state banks. This series is derived from a Reserve Bank survey of government lenders. For ‘Life insurance companies’, up to and including 1983, data are from ABS Cat No 5621.0; thereafter, until the end of the series, data are from the Insurance and Superannuation Commission Quarterly Bulletin of Statistics. D.10 Margin Lending The data in this table are compiled from a survey of banks and brokerage firms offering margin lending facilities. The survey has been conducted by the Reserve Bank on a quarterly basis since end-June 1999, with market coverage estimated to be at least 95 per cent. ‘Margin lending’ refers to the aggregate value of outstanding loans that are backed by approved securities (usually Australian equities and managed funds). The ‘value of underlying security’ is the market value of all security backing the margin lending at the end of the quarter. ‘Protected financing’ refers to margin loans packaged with a derivative product which guarantees that the portfolio’s capital value does not fall. Lenders typically charge a higher rate of interest for providing a capital protection facility. ‘Aggregate credit limit’ refers to the sum of the lenders’ approved loan limits, and represents the total amount lenders are willing to lend under margin loans. The ‘number of client accounts’ is the sum of all individual loan accounts administered by the lenders. A ‘margin call’ refers to the lenders’ requirement that the borrower provide additional security in support of existing borrowings if falls in the value of underlying security or failure to meet interest payments results in the ratio of borrowings (including interest owed) to underlying security rising above a pre-arranged level. Additional security to meet the margin call may be provided either in the form of cash or securities. The ‘average number of margin calls per day per 1 000 clients’ refers to the average of the margin call data over the reported period (quarters or years as appropriate). Government Finance Data for Tables E.3 to E.10 are compiled by the RBA, which maintains registers of Treasury notes and bonds on behalf of the Australian Government. E.1 Australian Government Budget Figures are sourced from the Department of Finance and Deregulation (DOFD) release, Australian Government Monthly Financial Statements. Full-year figures for expenses by function are sourced directly from DOFD, while all other full-year figures are as published in the Final Budget Outcome. Budget estimates reflect the most up-to-date Treasury estimates. Prior to July 1992, data for ‘Income tax – Individuals’ are net figures. ‘Individuals – Refunds’ cannot be separately identified. Between July and December 1999, DOFD published selected figures only on a quarterly
basis. Monthly publication recommenced in January 2000. Figures in this table may not be directly comparable over time owing to differences in accounting preparation methods. Prior to 1999/2000, cash-based accounting figures are reported. Since 2000/01, revenues, expenses and the operating result are reported on an accrual accounting basis under various accounting methods (refer to the source data for more detail). The ‘Underlying cash balance’, ‘Net advances’ and the ‘Headline surplus/deficit’ are on a cash accounting basis. ‘Gross PAYG withholding’ includes revenue from taxpayers previously subject to PAYE withholding arrangements, or who were in the prescribed payments system and are subject to PAYG withholding arrangements from 1 July 2000. Prior to July 2007, ‘Net foreign exchange gains’ and ‘Net gains from sales of assets’ were reported as revenue items. Since then, these flows have been treated as asset revaluations and are not included as income items. The category ‘Other taxes, fees and fines’ is included in ‘Indirect tax’ from July 2007. Goods and services tax (GST) revenue is included in ‘Indirect tax’ and associated payments to the states and territories are included in ‘General purpose inter-government transactions’ from July 2007. Prior to September 1999, ‘General purpose inter-government transactions’ are included in ‘Other’ expenses. ‘Economic services’ includes expenditure on Fuel and Energy; Agriculture, Forestry and Fishing; Mining and Mineral Resources (other than fuels); Manufacturing and Construction; Transport and Communication; and Other Economic Affairs. ‘General public services’ includes expenditure on Public Order and Safety. E.2 Australian Government Budget Deficit and Changes in Holdings of Debt Figures (other than changes in holdings of debt and overseas financing) are sourced from the DOFD release, Australian Government Monthly Financial Statements. Between July and December 1999, DOFD published selected figures only on a quarterly basis. Monthly publication recommenced in January 2000. ‘Miscellaneous financing’ includes discounts on Commonwealth Government securities (CGS), changes in Income Equalisation Deposits, profit from bullion transactions, net payments associated with Australian Government business enterprises’ superannuation, proceeds from IMF gold restitutions, IMF quota increases, and gains and losses on cross currency swaps. ‘Overseas financing’ includes foreign borrowings and maturities. The data are sourced from the Australian Office of Financial Management (AOFM). ‘Banks’ includes development banks and state domestic raisings. Authorised money market dealers held CGS prior to the revocation of their accreditation on 9 August 1996. ‘Commonwealth of Australia’ includes Treasury bonds issued on 8 August 2008 under the Commonwealth Inscribed Stock Act (the CIS Act) for the purposes of securities lending. For the months prior to August 2008, ‘Commonwealth of Australia’ includes securities acquired by the Australian Government under the Financial Management and Accountability Act (the FMA Act) until the cancellation of these securities on 14 August 2008 (prior to 1 July 1999, these securities were held by the Loan Consolidation and Investment Reserve (LCIR)). A negative sign denotes an increase in ‘Use of cash balances’. E.3 Commonwealth Government Securities Classified by Holder These data comprise inscribed stock, Treasury bonds (including Australian savings bonds), Treasury notes, and all other CGS on issue in Australia (as listed on the AOFM’s website at ). They exclude income equalisation deposits, internal Treasury bills, Federal Airport Corporation, Snowy Mountains Hydro-Electric Authority and Australian National Railways Securities. ‘Commonwealth of Australia’ includes Treasury bonds issued on 8 August 2008 under the CIS Act for the purposes of securities lending. For the months prior to August 2008, ‘Commonwealth of Australia’ includes securities acquired by the Australian Government under the FMA Act until the cancellation of these securities on 14 August 2008 (prior to 1 July 1999, these securities were held by the LCIR). ‘Reserve Bank Total’ include public Treasury bills which were issued only up to the end of June 1984.
‘Other private financial institutions’ include private fire, marine and general insurance offices, pension and provident funds, trustee companies and authorised money market dealers prior to the revocation of their accreditation on 9 August 1996. ‘Government financial institutions’ include government insurance offices, pension and provident funds, trustees and other government financial institutions. ‘Other public authorities’ include Australian Government, State government, semi-government and local government authorities. The data for ‘Commonwealth of Australia’ are sourced from the AOFM. The data for ‘Reserve Bank Total’ are sourced from the RBA. The data for ‘Estimated non-resident holdings’ are sourced from ABS Cat No 5302.0 (Table 30). Data for more recent years are at market value. From February 2002 the remainder of the data are sourced from Austraclear Limited. Prior to this, these data were sourced from the RBA. Data for February 2002 may have been affected by the transfer of CGS from RITS to the Austraclear System. From 12 August 2008, changes in ‘Commonwealth of Australia’ may reflect the lending of Treasury bonds against non-CGS collateral under the AOFM securities lending facility. For more information on this facility see the AOFM website (). E.4 Treasury Note Tenders Results of note tenders are sourced from the AOFM. Prior to the tender held on 5 March 2009, data are sourced from the RBA. E.5 Treasury Bond Tenders ‘Amount allotted, by years to maturity’ excludes amounts taken up by the Reserve Bank of Australia. Prior to 27 September 2001 the ‘weighted-average yield’ was calculated to 3 decimal places. Results of bond tenders are sourced from the AOFM. Prior to the tender held on 24 October 2006, data are sourced from the RBA. Treasury bond switch tenders are not included; these are published in Table E.6. E.6 Treasury Bond Switch Tenders ‘Issue yield’ is quoted by the AOFM at 10:15 am on the day of the tender. ‘Amount purchased at tender’ refers to the face value of bonds purchased by the AOFM. At each tender the sum of the amounts purchased will equal the face value of Treasury bonds issued. Results of the bond switch tenders are sourced from the AOFM. For more information see the AOFM website (). E.7 Treasury Capital Indexed Bonds Prior to 27 September 2001 the ‘weighted-average real yield’ was calculated to 3 decimal places. The issuance of Treasury indexed bonds was suspended in May 2003. E.8 Maturity Structure of Non-official Holdings of Marketable Commonwealth Government Securities Face value of marketable CGS redeemable in Australian currency (inscribed stock and bonds listed on stock exchanges and Treasury notes, as set out on the AOFM website at ); excluding Australian savings bonds, Special bonds and various other miscellaneous securities. Holdings by the RBA and ‘Commonwealth of Australia’ are not included. E.9 Commonwealth Government Securities Classified by Holder as at 30 June These data comprise inscribed stock, Treasury bonds (including Australian savings bonds), Treasury notes, and all other CGS on issue in Australia (as listed on the AOFM website at ). They exclude income equalisation deposits, internal Treasury bills, Federal Airport Corporation, Snowy Mountains Hydro-Electric Authority and Australian National Railways Securities. ‘Commonwealth of Australia’ includes Treasury bonds issued on 8 August 2008 under the CIS Act for the purposes of securities lending. For the years up to 30 June 2008, ‘Commonwealth of Australia’ includes securities acquired by the Australian Government under the FMA Act, until the cancellation of these securities on 14 August 2008 (prior to July 1999, these
securities were held by the LCIR). Authorised money market dealers held CGS prior to the revocation of their accreditation on 9 August 1996. The data for ‘Commonwealth of Australia’ are sourced from the AOFM. The data for ‘Reserve Bank’ are sourced from the RBA. From June 2002 the remainder of the data are sourced from Austraclear Limited. Prior to this, these data were sourced from the RBA. From 12 August 2008, changes in ‘Commonwealth of Australia’ may reflect the lending of Treasury bonds against non-CGS collateral under the AOFM securities lending facility. For more information on this facility see the AOFM website (). E.10 Commonwealth Government Securities on Issue Data are sourced from Government Securities on Issue to 30 June 1995 and from the AOFM’s website thereafter. ‘Treasury bonds’ include $6 020 million Treasury indexed bonds at 30 June 2008. ‘Treasury bills’ do not include internal Treasury bills. There were no internal Treasury bills on issue at 30 June 2008. Figures for ‘Australian Government’ include Treasury bonds issued on 8 August 2008 under the CIS Act for the purposes of securities lending. For the years up to 30 June 2008, figures for ‘Australian Government’ include securities held by the Commonwealth of Australia as a result of the Australian Government’s repurchase activities; at 30 June 2008 these holdings totalled $5 020 million Treasury bonds; these securities were cancelled on 14 August 2008. Government securities ‘Redeemable overseas’ have been converted to Australian currency at the rates of exchange on the dates shown. E.11 Net Lending of All Public Authorities Net lending data are from the capital account tables in ABS Cat No 5204.0. Data in this table exclude public financial authorities. Financial Markets Unless otherwise indicated, the tables in this section are compiled by the Reserve Bank of Australia. F.1 Interest Rates and Yields – Money Market Interest rates and yields in this table are representative. They are the midpoint of predominant bid and offer quotations in each market as identified by the RBA. ‘Interbank cash market’ is a weighted average of the interest rates at which banks have borrowed and lent exchange settlement funds overnight. ‘Bank accepted bills’ are estimated closing yields. Prior to March 1995 estimated midday yields are shown. ‘Overnight indexed swaps’ are closing market rates. All monthly figures are an average of daily figures for the month. F.2 Interest Rates and Yields – Capital Market Interest rates and yields in this table are representative. They are the midpoint of predominant bid and offer quotations in each market as identified by the RBA. Daily figures are estimated yields at the close of business. All monthly figures are the estimated yield at the close of business for the last business day of the month. ‘Indexed bonds’ yields are those on bonds with the longest time to maturity, also at the end of the day. F.3 Capital Market Yields and Spreads – Non-government Instruments Corporate bond yields are face-value weighted averages of yields on individual fixed-rate bonds issued by Australian non-government entities. Yields on individual bonds are sourced from UBS AG, Australia Branch. Two sets of corporate bond spreads are shown: the spread to Treasury bonds issued by the Australian Government; and the spread to the bank swap rate. In both cases, the indices shown are face-value weighted averages of the spreads between individual bonds and Treasury bonds or swap rates of equivalent maturity. The data in Table F.3 cover fixed-rate bonds issued in Australia by financial institutions and non-financial corporates (including public trading enterprises and credit-wrapped bonds). They
exclude asset-backed bonds and bonds issued by non-residents. Yields and spreads are shown for bonds that are in the broad credit ratings (as determined by Standard and Poor’s) AA, A, and BBB, and that have a remaining term to maturity of between 1 and 5 years. All bonds quoted by UBS that meet these criteria are included in the calculations. Monthly figures shown are for the last working day of the month. Credit default swap spreads (premia) are the simple averages of credit default swap spreads on the non-subordinated debt of individual Australian financial institutions and non-financial corporates. The individual credit default swap spreads measure the quarterly payments for terms of 5 years on credit default swaps with contractual terms as set out in the Australian Financial Markets Association’s (AFMA) OTC Financial Product Conventions for Credit Derivatives. The spreads are quoted on an annualised basis and are averaged over broad credit ratings (AA, A and BBB). Individual spreads are obtained from AFMA and are used with their permission. All spreads quoted by AFMA are included in the calculations. AFMA surveys credit default spreads every Thursday. The notation ‘..’ indicates that no reading was available on that day. Monthly figures shown are for the last Thursday of each month. F.4 Retail Deposit and Investment Rates Data in this table are compiled at or near end of month. Figures for ‘banks’ transaction accounts’ and ‘cash management accounts at banks’ are averages of the five largest banks’ rates, except prior to April 2001, when the averages are for the four largest banks. Figures for ‘building societies’ transaction accounts’ are the average rates for the five largest building societies, by total deposits. Figures for ‘credit unions’ transaction accounts’ are a trimmed average for the seven largest credit unions, by total deposits. ‘Bonus savings accounts’ are deposit accounts that pay a higher rate of interest if at least one deposit and no withdrawals are made each month. Figures for ‘banks’ bonus savings accounts’ are an average of the five largest banks’ rates assuming these requirements are met. Prior to April 2003, the average is for three of the five largest banks; between April 2003 and April 2005, the average is for four of the five largest banks. Figures for ‘cash management trusts’ are the weighted average net yield to unit holders. The data are sourced from ABS Cat No 5655.0, which is published quarterly. Prior to December 2003 the data were sourced from ABS Cat No 5635.0.40.001, which was published monthly. ‘Online savings accounts’ are internet-based deposit accounts that typically have no or low minimum balance requirements; no account-servicing fees; limited transaction capabilities, and usually must be linked to a separate transaction account into and out of which funds can be transferred electronically. Figures for ‘online savings accounts’ are a trimmed average of the interest rates on the accounts offered by prominent providers, including the five largest banks. Figures for ‘banks’ term deposits’, where available, are averages of the five largest banks’ rates, except prior to April 2001, when the averages are for the four largest banks. F.5 Indicator Lending Rates Data in this table are compiled on the last working day of the month. Business lending rates are the predominant or average indicator rates offered by major banks on loans to small businesses. The definition of small businesses differs between banks but is generally based on annual turnover, number of employees, amount of borrowings or deposits with the particular bank, or a combination of these. In most cases, a margin is added when setting rates on individual loans, although loans secured by residential property generally do not attract a risk margin. Since early 1998, banks have differed in their approaches to determining risk margins: for some banks, these margins vary according to the type of security offered; for others, they vary based on the riskiness of the customer; risk margins also vary from lender to lender. The effect of changing pricing policies and products has been to introduce breaks in the series, which are identified in Table F.5 and in the Technical Notes to Tables. ‘Term’ refers to fully drawn loans with a fixed maturity. ‘Small overdraft’ refers to those loans that are below the minimum size that qualifies for other variable rates to small businesses (for example, advertised overdraft indicator rates often apply only to loans of more than $20 000). The ‘3-year fixed’ rate is the average rate charged to small businesses for residentially secured business loans. ‘Weighted-average rate on credit outstanding’ represents the all-up interest cost of business loans (including risk margins) across all banks and is
calculated from data in Table D.7 using the midpoint of each interest band; this calculation excludes impaired loans. Small business loans are those facilities less than $2 million, while large business loans are those facilities $2 million and above. The ‘large business variable rate’ is the banks’ indicator rate prior to 1994. ‘Housing loan’ rates are those quoted for loans to owner-occupiers; in most cases, the same rates also apply to investment housing. Rates for ‘Banks’ and ‘Mortgage managers’ are the average rates of large lenders in each group. ‘Standard’ rates apply to housing loans with facilities such as the option to redraw or make early repayments. ‘Basic’ rates are those on loans with limited options. ‘Discounted’ rates are the interest rates that are offered on standard variable rate housing loans as part of professional packages. Where a bank offers a tiered product, with different rates depending on the size of the loan, the rate applying to a loan equal to or greater than $250 000 is used. ‘Three-year fixed’ rates are those on bank loans where the interest rate cannot be varied for the first three years of the loan. ‘Personal loan’ rates are the average rates of the large lenders in each group. ‘Term loans (unsecured)’ refers to instalment loans with terms up to seven years. Where a lender offers a tiered product, with different rates depending on the term and amount of the loan, the rate applying to a $15 000 3-year loan is used. ‘Credit cards – Standard’ refers to standard Visa and MasterCard accounts with an interestfree period. Prior to February 2006, the standard credit card series also included Bankcard rates. ‘Credit cards – Low rate’ refers to Visa and MasterCard accounts with an interest-free period, but with fewer features than standard credit cards. ‘Home equity loans’ refers to the indicator rates on revolving, variable rate loans secured by residential property. ‘Margin loans’ are revolving, variable rate loans backed by approved securities (usually Australian equities or managed funds). Where tiered rates are quoted, the rates applying to a $200 000 loan where interest is paid in arrears are used. F.6 Domestic Banking Fee Income Fees data are collected from 18 banks operating in Australia, covering over 90 per cent of total banking sector assets. Each bank provides data on income received over the financial year that is used as the basis for their public annual accounts. All fees are net of rebates and other concessions granted. Deposit account fees comprise mainly account-servicing and transaction fees, but also fees for overdrawing the account. Loans are either direct loans or accounts that have a facility to become overdrawn without penalty (particularly in the case of business loans). Loan account fees comprise mainly establishment and loan servicing fees. ‘Credit card’ fees comprise mainly annual fees, but also include late payment, over-limit, cash advance and foreign-currency conversion fees. ‘Other’ fees paid by households include fees from items such as travellers’ cheques, foreign currency transactions, and custodial services. Fees from business also include fees and charges collected from government entities, including statutory authorities and corporatised bodies. ‘Merchant fees’ include credit card and debit card fees charged to merchants, as well as nontransaction fees associated with the provision of terminal facilities. ‘Bank bills’ fees include activation, application, commitment, drawdown, facility, late presentation, and line fees. ‘Other’ business fees include export collections, foreign exchange guarantees, payroll service, safe custody and special clearance fees. ‘Exception fees’ are those charged by the bank when the customer breaches the terms of a banking product, typically by making a late payment or exceeding a credit limit on a credit card or by overdrawing a deposit account. F.7 Share Market From April 2000, figures refer to the S&P/ASX 200. Prior to April 2000, the All Ordinaries Index is used. The exceptions are ‘Dividend yield’ and ‘Price/Earnings ratio’, which refer to the MSCI Australia index. From April 2000, the ‘S&P/ASX 200 Banks’ index is based on S&P and Morgan Stanley Capital International’s Global Industry Classification Standard (GICS). Prior to April 2000, the
index was based on the ASX industry classification. The GICS classification excludes merchant banks and diversified financial institutions while the ASX index included these. From April 2000 onwards, the series has been derived by applying changes in the GICS index to the final value of the ASX index. The index is a subset of the ‘S&P/ASX 200 Industrials’ index. The ‘S&P/ASX 200 Industrials’ index reflects all stocks in the S&P/ASX 200 that are not included in the ‘S&P/ASX 200 Resources’ index. Prior to April 2000, the data refer to the All Industrials index. The ‘S&P/ASX 200 Resources’ index consists of stocks in the Energy GICS sector and the Metals and Mining GICS industry classification. Prior to April 2000, the data refer to the All Resources index. ‘Share price indices’ summarise movements in share prices resulting from trading on the ASX. ‘Accumulation index’ indicates the total pre-tax return from investments in listed shares after reinvesting dividends. ‘Share price indices’, the ‘Accumulation index’ and the ‘Dividend yield’ are calculated at endmonth. ‘Price/Earnings ratio’ is the end of month price/earnings ratio. The series uses 12-month trailing underlying profits for MSCI Australia companies. The data are based on free-float market capitalisation and sourced from MSCI through Thomson Reuters. ‘Market capitalisation of listed domestic equities’ is calculated at end-month for all equities listed on the ASX Mainboard, including preference shares and excluding overseas-domiciled stocks. Prior to April 1978, market capitalisation includes all listed equities, excluding preference shares. ‘Average daily turnover of equities’ is the value of monthly equities turnover on the ASX Mainboard, divided by the number of trading days in the month. F.8 Share Price Indices The original share price indices are sourced from Bloomberg, and have been rebased by the RBA. Share prices are end-month. For Australia, from March 2000, figures refer to the S&P/ASX 200. Prior to March 2000, the All Ordinaries Index is used. For New Zealand, from January 2001, figures refer to the NZSE-50. Prior to January 2001, the NZSE-40 is used. F.9 Foreign Exchange Turnover Against Australian Dollars – Daily Averages and F.10 Foreign Exchange Turnover Against All Currencies – Daily Averages ‘Turnover’ refers to all foreign exchange transactions in Australia, and is measured in terms of the nominal or notional amount of the contracts. The data are compiled from a survey of financial institutions authorised to deal in foreign exchange in Australia. From March 1998, figures reflect all deals struck in Australia, irrespective of where deals may be booked. Table F.9 shows turnover against the Australian dollar, while Table F.10 shows turnover against all currencies. From March 2007, the tables are based on information supplied by dealers at the end of the calendar month and averaged by the number or working days in the month. Previously, information was supplied by dealers on the last Wednesday of the month. Annual figures are averages of monthly data. For transactions with ‘Financial institutions local’, the transactions of only one party are recorded. From March 2007, dealers’ related party transactions, or trade between offices and affiliated firms on an ‘arm’s length basis’, are included in either ‘Financial institutions local’ or ‘Financial institutions overseas’. Prior to this, such deals were classified only under ‘Financial institutions local’. An ‘Outright spot’ transaction is one for receipt or delivery within two business days. An ‘Outright forward’ transaction is one for receipt or delivery in more than two business days. ‘Swaps’ are transactions in which parties agree to exchange two currencies on a specific date and to reverse the exchange at a later date. Only the ‘short leg’ of the transaction – the initial exchange – is recorded. ‘OTC options’ turnover reflects options contracts that give the right to buy or sell one currency in exchange for another at a specified price up to a specified future date. F.11 Exchange Rates The rate shown for the US dollar is the WM/Reuters Australian Dollar Fix at 4 pm (Sydney) each month end, sourced from page AUDFIX on Thomson Reuters and rounded to four decimals. Prior to 1 July 2008, the rate for the Australian dollar against US$ was a
representative midpoint of market buying and selling quotations as determined by the RBA at 4 pm (Sydney) each month end. ‘Other currency’ rates are calculated by ‘crossing’ (multiplying or dividing depending on the currency) the A$ rate with the RBA’s observations of the midpoints of the other currencies against the US$. The rates are indicative only and may differ from those quoted in the market. Prior to 12 December 1983, the A$ representative rate was the midpoint of rates at which the RBA was prepared to deal with ‘trading banks’ on that day. SDR is calculated by the IMF on the basis of a ‘weighted basket’ of four currencies – US dollar, Japanese yen, UK pound sterling and Euro. ‘Trade-weighted index’ is the average value of A$ in relation to currencies of Australia’s trading partners. The index is calculated at 4 pm according to the methodology advised in the Bulletin of October 2002. Current weights are specified in ‘For the Record’, Bulletin, October 2008. In January 1999, 11 countries that were members of the European Economic and Monetary Union (EMU) replaced their national currencies with the euro. These countries were Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. In subsequent years, five additional countries have adopted the euro: Greece (2001), Slovenia (2007), Cyprus (2008), Malta (2008) and Slovakia (2009). F.12 US Dollar Exchange Rates and Gold Price ‘Exchange rate’ data are the midpoints of buying and selling rates quoted at the close of trading in New York. The rates shown are indications of market value only and are monthended. The ‘Trade-weighted index’ is an index, calculated by the Federal Reserve, of the weightedaverage exchange rate of the US dollar against the major international currencies. It comprises the currencies of the euro area, Australia, Canada, Japan, Sweden, Switzerland and the United Kingdom. March 1973=100. The data are sourced from the Board of Governors of the Federal Reserve System, Federal Reserve Statistical Release ‘Foreign Exchange Rates – H.10’. The ‘Gold’ price is the London 3 pm fixing as sourced from the Bank of England. For a complete description of the data please refer to . F.13 Overseas Official Interest Rates All data sourced from the respective central banks. Rates shown are month-ended, except as outlined below. Prior to February 1996, the Canadian official rate was known as the bank rate. From February, the number in the table is the target for the overnight rate. Prior to March 1997, the UK official rate was the base rate. This is the yield equivalent to the discount rate on band 1 bills (5–37 days remaining maturity). From March 1997 to May 2006, the official rate was the 2-week repo rate. Since this time, the official rate has been the Official Bank Rate paid on commercial bank reserves. Prior to September 1998, the key Japanese official rate was the official discount rate. Since then, the key rate has been the uncollateralised overnight call rate. Prior to December 2008, the US official rate was the target for the federal funds rate. Since this time, the number in the table is the mid point of the target range for the federal funds rate. Euro area refers to the 16 member countries of the European Economic and Monetary Union. From 1 January 1999, the key official rate of the euro area is the 1-week repo rate, set by the Governing Council of the European Central Bank (ECB). F.14 Overseas Market Interest Rates and Government Security Yields US data are from the Board of Governors of the Federal Reserve System. All remaining data are provided by Bloomberg and Thomson Reuters (sourced originally from the respective central banks and statistical agencies). Rates shown are month-ended and represent the middle rate unless otherwise noted. Benchmark government bond yield series contain breaks when the benchmark changes. The US ‘Federal funds rate’ is the daily effective federal funds rate, based on a weighted average of rates on trades through NY brokers, reported to the Federal Reserve Bank of New York. The ‘US Treasury bill 3-month rate’ shows the secondary market selling rate in New York for 91-day Treasury bills, expressed as a yield. The ‘US 10-year Government security
yield’ refers to bid yields. The ‘Prime loan rate’ is the rate posted by the majority of the top 25 insured US-chartered commercial banks and is one of several base rates used by banks to price short-term business loans. The Japanese ‘Call rate’ is the uncollateralised overnight rate. The ‘Euro-yen 3-month rate’ is the euro-currency (London) Japanese 3-month rate. The Japanese ‘Government benchmark bond yield’ is the yield on the Government 10-year benchmark bond. The ‘Prime lending rate’ is the short-term prime rate which commercial banks charge their most creditworthy customers for loans of less than one year. The German ‘Interbank overnight rate’ is the Euro OverNight Index Average rate (EONIA), which is an effective overnight rate computed as a weighted average of all overnight unsecured lending transactions in the interbank market, initiated within the euro area by the declaring panel banks (the most active banks in the euro area). EONIA is calculated by the ECB. The ‘Interbank lending rate’ is the 3-month euro area interbank offered rate for the euro (EURIBOR). The German ‘Business lending rate’ is the volume-weighted average rate across all new loans to non-financial corporates of over €1 million with an initial rate fixation of up to 1 year. The interbank lending rate and 10-year government security yields are sourced from Thomson Reuters. The business lending rate is sourced from the Deutsche Bundesbank. The Hong Kong ‘Interbank lending rate’ is the 3-month interbank offered rate. The Hong Kong ‘Prime lending rate’ is the rate that banks charge their most creditworthy customers for corporate loans. The Singaporean ‘Prime lending rate’ is the interest rate that banks charge their most creditworthy customers and is sourced from the Monetary Authority of Singapore. New Zealand data are provided by Thomson Reuters, as are the south east Asian overnight interest rates, except for the Indonesian rate which is provided by Bloomberg. With the exception of Taiwan, south east Asian 3-month interest rates are 3-month interbank lending rates. The data are sourced from Bloomberg and Thomson Reuters. The Canadian ‘Overnight rate’ is the Bank of Canada estimate for the rate at which major participants in the money market borrow and lend one-day funds to each other. The data are sourced from the Bank of Canada. The Canadian ‘BA 90-day bill rate’, which is the Bank Accepted 90-day bill rate, and the Canadian government security yields are derived from Thomson Reuters. Indonesian ‘Call money’ is the overnight prime interbank rate, calculated as the weighted average rate submitted by 18 (JIBOR) bank members. The Taiwanese ‘Interbank overnight rate’ is the interbank swap overnight rate. The ‘BA 90-day bill rate’ is the Primary Bank Accepted 90-day bill rate. Prior to July 2000, the rate used was the Bank Accepted 61-90 day bill rate. The Thai ‘Interbank overnight rate’ is the mid-rate, which is an average of the minimum and an average of the maximum rates at which each bank participating in the interbank market executed a trade on the day. Prices and Output Apart from the RBA Index of Commodity Prices, the data in this section of tables are mainly drawn from the ABS. Other data are drawn from DEEWR and surveys undertaken by the National Australia Bank and the Melbourne Institute. In tables presenting data on a seasonally adjusted basis, non-seasonally adjusted data are used to derive annual totals. G.1 Measures of Consumer Price Inflation The data under the ‘Consumer price index’ heading are from ABS Cat No 6401.0. Percentage changes are calculated from the indices published in ABS Cat No 6401.0. The following definitions apply from the September quarter 2000. The ‘Consumer price index – All groups’ measure is the total or ‘headline’ consumer price index. The measure ‘Excluding volatile items’ is the CPI (all groups) less fruit, vegetables and automotive fuel. The ‘Market prices excluding volatile items – goods’ component (formerly titled ‘Private-sector goods’) is the CPI (all groups – goods component) less fruit, vegetables, automotive fuel, utilities and pharmaceuticals. The ‘Market prices excluding volatile items – services’ component (formerly titled ‘Privatesector services’) is the CPI (all groups – services component) less property rates and charges, health services, other motoring charges, urban transport fares, postal, education and child care.
The ‘Total’ measure of ‘Market prices excluding volatile items’ (formerly titled ‘Private-sector prices’) is the CPI (all groups) less fruit, vegetables, utilities, property rates and charges, health services, pharmaceuticals, automotive fuel, other motoring charges, urban transport fares, postal, education and child care. The ‘Private consumption chain price index’ is sourced from ABS Cat No 5206.0. The ‘Weighted median’ and ‘Trimmed mean’ are calculated using the component level data of the consumer price index. Both measures exclude interest charges prior to the September quarter 1998 and are adjusted for the tax changes of 1999–2000. The ‘Trimmed mean’ is calculated by ordering all the CPI components by their price change in the quarter and taking the expenditure-weighted average of the middle 70 per cent of these price changes. The ‘Weighted median’ is the price change in the middle of this ordered distribution, taking also expenditure weights into account. Annual rates of ‘Weighted median’ and ‘Trimmed mean’ inflation are calculated based on compounded quarterly rates. For calculating the ‘Weighted median’ and ‘Trimmed mean’, where CPI components are identified as having a seasonal pattern, quarterly price changes are estimated on a seasonally adjusted basis. Seasonal adjustment factors are calculated as concurrent factors, that is using the history of price changes up to and including the current CPI release. There is a series break at September 2002 due to the ABS publishing the ‘Weighted median’ and ‘Trimmed mean’ on behalf of the RBA from that point forward, using data to a higher level of precision than is publicly available. For further information on the various measures of underlying consumer price inflation, refer to ‘Box D: Underlying Inflation’, Statement on Monetary Policy, May 2002; ‘Box D: Measures of Underlying Inflation’, Statement on Monetary Policy, August 2005; and Roberts (2005), ‘Underlying Inflation: Concepts, Measurement and Performance’, Reserve Bank of Australia Research Discussion Paper No 2005-05. G.2 Consumer Price Index The data for this table are from ABS Cat No 6401.0, except for the series ‘Tradables excluding food and petrol’. The ‘Consumer price index’ measures the prices of a basket of goods and services. The basket covers a wide range of goods and services and is arranged in the 11 main groups shown in the table. The index levels for all the expenditure groups are referenced to 1989/90 = 100 except for ‘Financial and insurance services’, which is referenced to June 2005 = 100. The ‘Tradables’ component of the CPI comprises all items in the CPI (all groups) whose prices are largely determined on the world market. The ‘Tradables excluding food and petrol’, which is calculated by the RBA, is equal to the ‘Tradables’ component after the (volatile) food and petrol groups are excluded. The ‘Non-tradables’ component is all items in the CPI (all groups) not included in the ‘Tradables’ component. G.3 Producer Price Indicators The data in this table are from ABS Cat No 6427.0. ‘Stage of production’, ‘Transport and storage output’ and ‘Property and business services output’ price indices are measured at basic prices, i.e. prior to the imposition of any Australian taxes on products and any transport and trade margins. The pricing basis for ‘Manufacturing’ and ‘Construction’ price indices is basic prices for the output indices and purchasers’ prices for the input indices. G.4 Other Price Indicators Chain price indices are indexed with a reference year 2006/07 = 100. The ‘Private consumption’, ‘Gross domestic product’ and ‘Terms of trade’ indices are from ABS Cat No 5206.0. The ‘Terms of trade’ is the ratio of the implicit price deflator of exports of goods and services and the implicit price deflator of imports of goods and services. These implicit price deflators are indexed with a reference year 2006/07 = 100. The exports and imports chain price indices data are from ABS Cat No 5302.0. ‘Consumers’ inflation expectations’ are measured by the Melbourne Institute median expected inflation rate for the year ahead; end-quarter observations are shown. The ‘NAB survey’ of price expectations is measured by the National Australia Bank Quarterly Business Survey respondents’ average expected increase in the price of final products in the next three months. G.5 RBA Index of Commodity Prices The ‘RBA Index of Commodity Prices’ is calculated as a monthly average. The construction of the index is explained in ‘Modifications to the Reserve Bank of Australia’s Commodity Price
Index’, Bulletin, September 1998 and ‘Changes to the Reserve Bank of Australia’s Index of Commodity Prices’, Bulletin, October 2003. Data for recent months are preliminary. G.6 Labour Costs The data for the ‘Wage price index’ are from ABS Cat No 6345.0. The ‘Wage price index’ measures the change in the hourly rate of pay for a fixed basket of ‘constant quality’ jobs. Both ‘Total’ and ‘Private’ record the change in total pay exclusive of bonuses. Financial year 2003/04 (in non-seasonally adjusted terms) = 100. The data for ‘New federal enterprise agreements’ are from DEEWR. The data are average annualised wage increases paid by all federal enterprise agreements with quantifiable wage rises certified in the quarter. The averages are weighted by employee coverage. Data on ‘Average weekly ordinary-time earnings’ and ‘Average weekly earnings’ are from ABS Cat No 6302.0, and relate to the mid-month of the quarter in which they appear. ‘Average weekly earnings – national accounts’ data are from ABS Cat No 5206.0, and are composed of non-farm compensation of employees per wage and salary earner. ‘Nominal non-farm unit labour costs’ are calculated as non-farm labour costs divided by nonfarm productivity, and are indexed with a reference year 2006/07 = 100. The data are from ABS Cat No 5206.0. G.7 Labour Force The data under ‘Labour force survey’ are from ABS Cat No 6202.0. The annual values refer to the average of the period. The ‘Participation rate’ is calculated as the labour force (itself the sum of employed persons and unemployed persons) as a percentage of the civilian population aged 15 years and over. The ‘Unemployment rate’ is unemployed persons as a percentage of the labour force. ‘Aggregate weekly hours worked’ data are from ABS Cat No 5206.0. The data are based on the labour force survey and are indexed with a reference year 2006/07 = 100. Also included are estimates of hours worked by enlisted personnel, which are sourced from the Department of Defence. Hours worked by members of non-Australian defence forces stationed in Australia, overseas residents in Australia and certain overseas diplomatic missions are excluded. The data on ‘Vacancies’ are from ABS Cat No 6354.0. The data are derived from a survey of employers in which all civilian non-farm wage and salary earners are included, except employees in private households, employees of overseas diplomatic missions, and employees based outside Australia. The data for vacancies relate to the mid-month of the quarter in which they appear. This series has been discontinued for 2008/09. G.8 Indicators of Spending and Confidence ‘Retail trade’ data are from ABS Cat No 8501.0. The data exclude motor vehicle dealers and petrol sales, but include non-petrol sales of identified convenience stores of petrol stations. The chain volume measure is referenced to 2006/07 values. ‘Motor vehicle sales’ include passenger vehicles, sports utility vehicles, vans, trucks and buses. Sales of motorcycles are not included. These data are from ABS Cat No 9314.0. The private dwelling approvals and private non-residential building approvals data are from ABS Cat No 8731.0. Private non-residential building commencements data are from ABS Cat No 8752.0. Private engineering construction commencements data are from ABS Cat No 8762.0; current price data are deflated by the RBA, using the work done implicit price deflator, to produce chain volume estimates. Chain volume measures are referenced to 2006/07 values. The ‘Westpac-Melbourne Institute consumer sentiment index’ has a base of 100, at which the optimistic and pessimistic responses to the five questions in the survey are balanced. The ‘NAB business confidence index’ is from the National Australia Bank Quarterly Business Survey. This index measures respondents’ expectations of business conditions in their industry for the upcoming quarter. G.9 Rural Production Data are sourced from the ABARE publications, Australian Commodities; Australian Commodity Statistics and ABS Cat No 7215.0. Data for the most recent financial year are preliminary. G.10 Gross Domestic Product
The data for this table are from ABS Cat No 5206.0. Chain volume measures are referenced to 2006/07 values. There is a single measure of gross domestic product, ‘GDP’. For periods in which the components of GDP do not balance, statistical discrepancies have been introduced and GDP is calculated as the average of estimates from the income, expenditure and production approaches. For years in which balanced supply-use tables are available, the annual statistical discrepancies are zero. ‘Non-farm GDP’ is GDP less gross farm output. ‘Primary production’ is the sum of agriculture, forestry, fishing and mining. ‘Production and distribution’ is the sum of manufacturing, electricity, gas and water, construction, wholesale trade, retail trade, and transport and storage. ‘Other (mainly services)’ production is the sum of communication, finance and insurance, property and business services, government administration and defence, education, health and community services, cultural and recreation services, personal and other services, accommodation, cafes and restaurants, and ownership of dwellings. ‘Real gross domestic income' (real GDI) is calculated by adjusting gross domestic product for the effect of the terms of trade. The terms of trade is the implicit price deflator of exports of goods and services divided by the implicit price deflator of imports of goods and services. ‘Real gross national income’ is the income which accrues to persons, enterprises and other organisations regarded as residents of a country. ‘Real gross national income’ equals real GDI adjusted for net primary income flows from abroad. G.11 Gross Domestic Product – Expenditure Components The data for this table are from ABS Cat No 5206.0. Chain volume measures are referenced to 2006/07 values. ‘Buildings and structures investment’, ‘Equipment investment’ and ‘Public demand’ have been adjusted to exclude the effects of net sales of existing capital assets between the private and other sectors (that is, the public and external sectors). ‘Other investment’ includes livestock, intangible fixed assets and ownership transfer costs. The expenditure components may not sum to GDP because of a statistical discrepancy between the expenditure measure of gross domestic product and GDP. There is also a minor loss of additivity among chain volume measures of output when the base and reference years do not coincide. This affects GDP and its components prior to the latest reference year, noted above. G.12 Gross Domestic Product – Income Components The data for this table are from ABS Cat No 5206.0. ‘Gross operating surplus - other’ is the gross operating surplus of public non-financial enterprises and the gross operating surplus from dwellings owned by persons. ‘Gross mixed income’ is the income from production of unincorporated enterprises. ‘Other receipts’ by households includes gross operating surplus from dwellings owned by persons, property income, non-life insurance claims, current transfers to non-profit institutions and other current transfers (previously described as unrequited transfers). ‘Other outlays’ by households includes interest on dwellings, consumer debt interest, property income payable by unincorporated enterprises, social contributions for workers’ compensation, non-life insurance premiums, other current taxes on income and other current transfers. ‘Saving’ is net saving and excludes depreciation. Balance of Payments and External Finance In this section, data for all tables are sourced from the ABS. For detailed information about these data see Balance of Payments and International Investment Position, Australia: Concepts, Sources and Methods (ABS Cat No 5331.0). In tables presenting data on a seasonally adjusted basis, non-seasonally adjusted data are used to derive annual totals. H.1 Balance of Payments – Current Account The data for this table are from ABS Cat Nos 5368.0 (monthly) and 5302.0 (quarterly). All data are expressed in current prices and are seasonally adjusted. ‘Other goods’, which comprise goods for processing, repairs on goods, goods procured in ports and non-monetary gold, are included with ‘Non-rural exports’ and ‘Intermediate imports’.
Discrepancies may exist between the quarterly and monthly data. This is because the ABS uses different methods to seasonally adjust the quarterly and monthly data. H.2 Balance of Payments – Financial Account The data for this table are from ABS Cat No 5302.0. All data are expressed in current prices and are not seasonally adjusted. Financial account flows are net, i.e. foreign investment in Australia less Australian investment abroad. The ‘Balancing item’ comprises the capital account and net errors and omissions. H.3 Exports and Imports of Goods and Services The data for this table are from ABS Cat No 5302.0. All data are seasonally adjusted. Chain volume measures are referenced to 2006/07 values. Exports of ‘Manufactures’ are defined as machinery, transport equipment, other manufactures and beverages. ‘Resources’ exports are defined as metal ores & minerals, coal, coke & briquettes, other mineral fuels, metals (excluding non-monetary gold) and non-monetary gold. ‘Other’ exports are defined as goods for processing, repairs on goods, goods procured in ports and other non-rural (including sugar), less beverages. ‘Intermediate’ imports are defined as intermediate & other merchandise goods, as published by the ABS, less other merchandise goods. ‘Other’ imports are defined as other merchandise goods, goods for processing, repairs on goods, goods procured in ports and non-monetary gold. H.4 Australia’s Gross Foreign Liabilities and Assets The data for this table are from ABS Cat No 5302.0. All data are expressed in current prices and are not seasonally adjusted. ‘Official sector’ comprises general government and the RBA. Total official sector assets and liabilities include debt securities, loans, currency deposits and other assets and liabilities. ‘Non-official sector’ comprises private corporate trading enterprises, banks, unincorporated businesses, State and Territory Government central borrowing authorities and commercially oriented public non-financial corporations. ‘Direct investment’ broadly includes capital invested in an enterprise by an investor having a significant influence, either potentially or actually exercised, over the key policies of the enterprise. Prior to June 1986, this meant ownership of 25 per cent or more of the ordinary shares or voting stock of that enterprise. The threshold was reduced to 10 per cent in June 1986. ‘Portfolio investment’ covers capital invested in an enterprise by an investor that is assumed to not significantly influence key policies of the enterprise. Portfolio investment uses the same ownership threshold as direct investment – since June 1986 ownership of less than 10 per cent of the ordinary shares or voting stock. ‘Financial derivatives’ are identified separately to portfolio investment from June 1994. Financial derivatives are secondary securities linked to specific financial instruments, indicators or commodities, which give the holder a qualified right to receive a benefit at some future date. Examples include options (on currencies, interest rates, commodities, indices, etc), futures, warrants and currency and interest rate swaps. Total assets and liabilities also include ‘other investment’ by the non-official sector which covers finance not included in direct investment, portfolio investment, financial derivatives and reserve assets. It also includes trade credits, loans, currency and deposits and other assets and liabilities. ‘Total liabilities – Debt’ includes deposits by non-residents with the RBA, which are classified as foreign borrowing by the ABS. Foreign currency debt excludes reserve assets that are unable to be allocated by currency and, prior to September 1999, derivatives that were unable to be allocated by currency. ‘Gross foreign liabilities – Equity’ is measured at paid-up value before June 1980. From June 1980 this component is measured at market value. ‘Gross foreign assets – Equity’ is measured at market value from June 1986. Before that date, this component is measured on a variety of bases, including paid-up value. H.5 Australia’s Net Foreign Liabilities
The data for this table are from ABS Cat Nos 5206.0 and 5302.0. All data are expressed in current prices and are not seasonally adjusted, unless otherwise noted. Net foreign liabilities are defined as Australia’s gross foreign liabilities less gross foreign assets; this is sometimes referred to as the ‘net international investment position’. ‘Net foreign debt – Official’ includes net borrowings by general government and the RBA. ‘Net debt payments – Official’ includes interest payments on general government borrowings and charges payable by the RBA to the IMF. Payments of central borrowing authorities are included in the ‘Non-official’ sector. ‘Net equity payments’ includes all non-interest income items such as dividends, reinvested earnings and charges on accounts payable and receivable. ‘Net debt payments’ and ‘Net income deficit’ as a per cent of GDP are both calculated using seasonally adjusted quarterly data. Overseas Economic Statistics The euro area comprises Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. I.1 Overseas Economic Statistics – Real Gross Domestic Product Data for the United States are from the Bureau of Economic Analysis. Japanese GDP data are issued by the Economic and Social Research Institute, Cabinet Office. Euro area statistics are from Eurostat. Statistics for the United Kingdom are from the National Statistics website (). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). South Korean statistics are from the Bank of Korea. Hong Kong statistics are from the Census and Statistics Department. Data for Taiwan are from the Bureau of Statistics. Data for Singapore are from the Ministry of Trade and Industry. New Zealand data are sourced from Statistics New Zealand. Data for the United States, Japan, the euro area and the United Kingdom are produced on a ‘chain weighted’ basis. New Zealand data are based on the production measure. Data are seasonally adjusted. To aid comparability, GDP indices for those countries where the base relates to other years have been rebased to 1996 = 100. I.2 Overseas Economic Statistics – Consumer Prices Data for the United States are from the Bureau of Labor Statistics. Japanese data are from the Statistics Bureau, Ministry of Internal Affairs and Communications. Euro area statistics are from Eurostat. Statistics for the United Kingdom are from the National Statistics website (). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). South Korean statistics are from the National Statistical Office. Hong Kong data are from the Census and Statistics Department. Data for Taiwan are from the Bureau of Statistics. Data for Singapore are from the Department of Statistics. New Zealand data are from Statistics New Zealand. To aid comparability, consumer price indices for those countries where the base relates to other years have been rebased to 1996 = 100. I.3 Overseas Economic Statistics – Unemployment Data for the United States are from the Bureau of Labor Statistics. Japanese data are from the Statistics Bureau, Ministry of Internal Affairs and Communications. Euro area statistics are from Eurostat. Statistics for the United Kingdom are from the National Statistics website (). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). South Korean statistics are from the National Statistical Office. Hong Kong data are from the Census and Statistics Department. Data for Taiwan are from the Bureau of Census and data for Singapore are from the Ministry of Manpower. New Zealand data are from Statistics New Zealand. Data for the United Kingdom are calculated as a three-month average, and are presented in the end-month of the three month period. Data are seasonally adjusted. Technical Notes to Tables
Breaks in Series Due to Establishment of New Banks and Other Changes in Reporting Arrangements*
Date Sep 83 Mar 85 Jun 85 Oct 85 Dec 85
(a) Breaks in Series Due to Establishment of New Banks** New Bank Former Name(s) Bank of Queensland Savings Bank Macquarie Bank Limited Advance Bank Limited CHASE AMP Bank Limited Lloyds Bank NZA Limited Barclays Bank Australia Limited Bank of China Bank of Tokyo Australia Limited Citibank Limited Citibank Savings Limited IBJ Australia Bank Limited .. Hill Samuel Australia Limited N.S.W. Building Society CHASE AMP Acceptances Ltd Lloyds International Limited Barclays Australia Limited .. BOT Australia Ltd Citicorp Australia/ CitiSecurities Limited Citicorp Australia/ CitiSecurities Limited .. .. BT Australia Limited European Asian of Australia Limited Wardley Australia Limited NatWest Finance Limited Capel Court Corporation Group/Mercantile Credits Group/National Mutual RBC National Mutual Permanent Building Society Standard Chartered Finance Ltd BA Australia Limited/ BA Australia Leasing Limited .. Civic Co-operative Permanent Building Society Ltd United Permanent Building Society Ltd Perth Building Society/ Hotham Permanent Building Society The Tasmanian Permanent Building Society/ Launceston Bank for Savings Metropolitan Permanent Building Society RESI-Statewide Building Society Civic Advance Bank Limited/ Canberra Permanent Cooperative Building Society Limited Town & Country W.A. Building Society St. George Building Society Ltd OUB Australia Limited
Previous Classification .. MMC PBS MMC MMC MMC .. MMC FC/MMC FC/MMC .. .. MMC MMC MMC FC MMC
Jan 86 Feb 86
Mitsubishi Bank of Australia Limited Bankers Trust Australia Limited Deutsche Bank Australia Limited HongkongBank of Australia Limited NatWest Australia Bank Limited National Mutual Royal Bank Limited National Mutual Royal Savings Bank Limited
PBS FC MMC .. PBS PBS PBS PBS/SB
Apr 86 May 86 Jun 86
Standard Chartered Bank Australia Limited Bank of America Australia Limited Bank of Singapore (Australia) Limited Civic Advance Bank Limited
Mar 87 Apr 87 Sep 87
National Mutual Royal Savings Bank (NSW) Limited Challenge Bank Limited Tasmania Bank
Jul 88 Jul 89 Aug 90
Metway Bank Limited Bank of Melbourne Limited Canberra Advance Bank Limited
PBS PBS B/PBS
Oct 91 Jul 92 May 93
Town & Country Bank Limited St. George Bank Limited Overseas Union Bank Limited
PBS PBS MMC
Date Sep 93 Jan 94
(a) Breaks in Series Due to Establishment of New Banks** New Bank Former Name(s) United Overseas Bank Limited Adelaide Bank Limited State Street Bank and Trust Company UOB Australia Limited The Co-operative Building Society of South Australia State Street Finance Limited .. Barclays Bank Australia Limited Credit Suisse Bullion Pacific Limited State Bank of South Australia Bank of America Australia Limited Michell NBD Limited Deutsche Bank Australia Limited Arab Australia Limited First Chicago Australia Limited J.P. Morgan Australia Limited Mercantile Mutual Finance Corporation Limited Dai-Ichi Kangyo Australia Limited .. Bendigo Sandhurst Mutual Permanent Land and Building Society .. The Chase Manhattan Bank Australia Limited .. Asahi Finance (Australia) Ltd ANZ Grindlays Bank PLC (UK) .. .. .. .. .. .. Dresdner Australia Limited Rothschild Australia Limited .. .. Toronto Dominion Australia Limited
Previous Classification MMC PBS MMC .. B MMC B B MMC B MMC MMC MMC GF MMC .. PBS
Mar 94 Apr 94 May 94 Jul 94
Barclays Bank PLC St. George Partnership Banking Limited Credit Suisse Bank of South Australia Limited Bank of America NT & SA NBD Bank, N.A. Deutsche Bank AG
Sep 94 Oct 94 Nov 94 Dec 94 Jan 95 Mar 95 Jul 95
Arab Bank Australia Limited The First National Bank of Chicago Morgan Guaranty Trust Company of New York ING Mercantile Mutual Bank Limited The Dai-Ichi Kangyo Bank, Limited Midland Bank PLC Bendigo Bank Limited
Sep 95 Oct 95 Feb 96 Apr 96 Jul 96
Queensland Industry Development Corporation The Chase Manhattan Bank (NA) The Citibank N.A. The Asahi Bank, Ltd ANZ Grindlays Bank Limited Oversea-Chinese Banking Corporation Limited
.. B .. MMC .. .. .. .. .. .. .. MMC MMC .. .. MMC
Aug 96 Nov 96 Feb 97 Oct 97 Nov 97 Jan 98 Apr 98 May 98 Jun 98 Aug 98
Co-operative Central RaiffeisenBoerenkenbank B.A. Westdeutsch Landesbank Girozentrale Royal Bank of Canada The International Commercial Bank of China ING Bank NV Dresdner Bank AG NM Rothschild & Sons (Australia) Limited ABN AMRO Bank N.V. AMP Bank Limited The Toronto-Dominion Bank
Date Jun 00 Aug 02 Dec 02 Jan 04 Aug 05 Sep 05 Aug 06 Jun 07 Jan 08 Jun 08 Oct 08
(a) Breaks in Series Due to Establishment of New Banks** New Bank Former Name(s) Elders Rural Bank Investec Bank Fortis Bank SA/NV Societe Generale UBS AG Bank of China (Australia) Limited HBOS Treasury Services Plc Sumitomo Mitsui Banking Corporation Allied Irish Banks, Public Limited Company Standard Bank, Public Limited Company Industrial and Commercial Bank of China Limited The Northern Trust Company Elders Rural Services Limited Investec Australia Limited .. SG Australia Ltd .. .. .. .. .. .. .. ..
Previous Classification PFC MMC .. MMC .. .. .. .. .. .. .. ..
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Jan 84 Nature of Change Change in report forms (introduction of supplement to forms I and J for savings banks) Change in accounting procedures by a bank (or banks) Change in report forms (introduction of supplement to form D for trading banks) Change in collection coverage Change in collection coverage Details New form provided detail on savings banks fixed deposits, statement accounts etc. Reclassification of some current deposits and fixed deposits. New form provided more detail on lending.
Jul 84 Jan 85
Oct 85 Jun 86
Foreign currency assets and liabilities included. Minor break in financial aggregates as identified foreign currency deposits with savings banks excluded. PIBA included. This added $795 million to total assets of banks and smaller amounts to the financial aggregates. Data on amounts financed for credit cards revised due to the correction of a reporting error by one bank. Estimate of banks’ term deposit rates ($10 000) from September 1987 to August 1988. The estimate is based on data on banks’ rates for balances between $5 000 and $100 000. Change in classification of assets and liabilities. Savings banks commence reporting weekly. Nonresidents A$ assets/liabilities included. New classification provides separate data on bank bills (previously included in ‘all other’), borrowing from and lending to governments, and from (to) other financial institutions (previously only Reserve Bank, authorised money market dealers and banks), loans for owner occupied housing (previously only available for savings banks).
Jul 87
Change in collection coverage
Reporting error
Sep 87
Reporting change
Jan 89
Major change in report forms and coverage (new form D for trading banks and form I for savings banks)
Change in collection coverage
ARDB included. This added $382 million to total
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Nature of Change Details assets of banks and smaller amounts to the financial aggregates. CDB included. This added $2,034 million to total assets of banks and smaller amounts to the financial aggregates. Reclassification of items by a bank (or banks) Jan to May 89 May to Jul 89 Jul 89 Jan 90 Change in collection coverage Change in collection coverage Change in collection coverage Major change in report forms and coverage Reclassification of approximately $1.1 billion of ‘deposits-other’ to ‘other borrowings’. Defence Services Home Loan portfolio acquired by a bank. Transfer of loans from Tricontinental Holdings Ltd to State Bank of Victoria. Transfer of housing loans to the public sector by one bank. Change in basis from ‘in Australia’ to ‘on Australian books’. Distinction between savings and trading banks abolished. Non-resident foreign currency assets included. Jan 91 State Bank of Victoria no longer included separately Reclassification of items by a bank (or banks) Included in Commonwealth Bank of Australia. Reclassification of approximately $2.0 billion of ‘current deposits’ to ‘all other A$ liabilities’ and ‘other borrowings’. Reclassification of approximately $1.0 billion of ‘all other A$ assets’ to loans to financial intermediaries. Reporting change Reporting change by a bank reduced ‘other borrowings-other’ and ‘total liabilities’ by approximately $1.3 billion. Transfer of commercial loans from NBFIs to a bank. Reporting change by a bank reduced ‘foreign currency liabilities’ and ‘total liabilities’ by around $1.0 billion. ‘Foreign currency assets’ and ‘total assets’ fell by approximately $1.7 billion. Aug 91 Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reclassification of approximately $2.1 billion of fixed deposits to interest bearing current deposits and ‘other’ deposits. Reclassification of some non-resident deposits to resident deposits. Reclassification of current deposits to investment savings account deposits. Reclassification of some investment housing loans to owner-occupied housing. Dec 91 May 92 Jul 92 National Mutual Royal Bank Limited no longer included separately Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Included in Australia and New Zealand Banking Group Limited. Reclassification of ‘other’ deposits to ‘investment savings account’ deposits. Reclassification of approximately $2.5 billion of ‘other’ deposits to ‘current deposits’. Reclassification of approximately $2.5 billion of loans from private sector to government sector associated with the transfer of non-performing loans to government. ANZ Savings Bank Limited no longer included separately Included in Australia and New Zealand Banking Group Limited; interbank accounts reduced by
Apr 91 Jul 91
Change in collection coverage Reporting change
Sep 91
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Nature of Change Details approximately $4.0 billion. Financial aggregates not affected. Aug to Sep 92 Oct 92 Transfer of assets and liabilities Transfer of approximately $1.3 billion of assets and liabilities from a non-bank subsidiary to parent bank. Included in National Australia Bank Limited; interbank accounts reduced by approximately $2.9 billion. Financial aggregates not affected. Included in Commonwealth Bank of Australia; interbank accounts reduced by approximately $1.3 billion. Financial aggregates not affected. Reclassification of approximately $1.5 billion of government securities to fixed loans. Reclassification of some investment housing loans to owner-occupied housing. Mar 93 Apr 93 Reclassification of items by a bank (or banks) Reporting change Reclassification of approximately $1.0 billion of ‘other’ commercial loans to fixed loans. Reporting change by a bank increased ‘foreign currency assets’ and ‘total assets’ by approximately $0.9 billion. Reclassification of approximately $0.8 billion of ‘investment savings account’ deposits to ‘current deposits bearing interest’. Transfer of approximately $1.0 billion of assets and liabilities from MMC to parent bank. Reclassification of approximately $1.5 billion of ‘all other (resident) liabilities’ to ‘other (non-resident) borrowings’. Reporting change by a bank reduced both ‘current deposits’ and ‘overdrafts’ by approximately $1.0 billion. Included in Westpac Banking Corporation; interbank accounts reduced by approximately $2.2 billion. Financial aggregates not affected. Transfer of some assets and liabilities to MMC. Reclassification of approximately $1.2 billion of fixed personal loans to commercial loans. Transfer of approximately $3.4 billion of assets and liabilities from a bank to the government sector. Transfer of some assets and liabilities to MMC. Included in Bank of Queensland Limited; interbank accounts reduced by approximately $0.3 billion. Financial aggregates not affected. Reclassification of $0.8 billion of ‘current noninterest bearing deposits’ from the government sector to ‘Other’. Reclassification of approximately $0.6 billion of fixed commercial loans as personal loans. Reclassification of some government overdraft loans to commercial overdrafts. Jan 95 Citibank Savings Limited no longer included separately Included in Citibank Limited; interbank accounts reduced by approximately $1.8 billion. Financial aggregates not affected.
National Australia Savings Bank Limited no longer included separately Commonwealth Savings Bank of Australia no longer included separately Reclassification of items by a bank (or banks)
Jan 93
Reclassification of items by a bank (or banks) Jun 93 Transfer of assets and liabilities Reclassification of items by a bank (or banks) Jul 93 Change in accounting procedures by a bank (or banks) Westpac Savings Bank Limited no longer included separately Barclays Bank Australia Limited no longer included Reclassification of items by a bank (or banks) Transfer of assets and liabilities Deutsche Bank Australia Limited no longer included Sep 94 Bank of Queensland Savings Bank Limited no longer included separately Reclassification of items by a bank (or banks)
Oct 93
Apr 94 Jul 94
Oct 94
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Apr 95 Nature of Change Reporting change Details Reporting change by a bank reclassified some resident foreign currency liabilities to non-resident liabilities and reduced both total foreign currency liabilities and assets by approximately $0.6 billion. Reporting change by a bank reduced ‘all other A$ liabilities’, ‘total liabilities’ and ‘total assets’ by approximately $1.2 billion. Included in Australia and New Zealand Banking Group Limited; interbank accounts reduced by approximately $1.0 billion. Financial aggregates not affected. Transfer of some assets and liabilities to MMC. Reclassification of $0.2 billion from commercial loans to owner-occupied and investment housing in the December quarter 1995 and revision to the levels of business credit outstanding from December 1995 to the September quarter 1998 inclusive. Table B.17 (now Table D.7) has been revised for this period and the weighted average interest rates on credit outstanding, as published in Tables B.18 (now Table D8) and F.4, have also been revised. Feb to Mar 96 Mar 96 Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reclassification of ‘statement savings account’ to interest bearing current deposits. Reclassification of approximately $0.4 billion of owner-occupied housing loans as investment housing. Reclassification of approximately $0.6 billion of fixed personal loans as commercial loans. Apr 96 Reporting change Reporting change by a bank reduced ‘all other A$ assets’ and ‘total assets’ by approximately $0.8 billion. Transfer of approximately $3.2 billion of assets and liabilities from NBFIs to a bank. Transfer of assets to the non-bank sector. Transfer of assets to the non-bank sector. Included in St. George Bank Limited. Transfer of some assets and liabilities to the nonbank sector. Included in National Australia Bank Limited. Reporting change by a bank increased the number of debit card accounts, and the number and value of debit cards purchases. The introduction of a market risk capital charge for banks has changed the level of risk-weighted assets reported by banks in respect of both on- and off-balance sheet business. Changes in the pricing policies of banks altered the basis for determining the indicator rate applying to small business term loans secured by assets other than residential property. The methodology used to
Jun 95
Reporting change
Jul 95
Town & Country Bank Limited no longer included separately
Dec 95
Bank of America Australia Limited no longer included Reclassification of items by a bank (or banks)
Dec 96 Jan 97 Feb 97 Apr 97
Transfer of assets and liabilities Advance Leasing Limited no longer included Bank of Singapore (Australia) Limited no longer included St. George Partnership Banking Limited no longer included separately Challenge Limited no longer included separately
May 97 Mar 98
Bank of New Zealand no longer included separately Reporting change
Reporting change
Reporting change
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Nature of Change Details calculate the indicator rate also changed from being the predominant rate of major banks to an arithmetic average. Apr 98 Advance Bank Australia Limited no longer included separately Change in collection coverage Included in St. George Bank Limited. A bank ceased to write new business for variable rate, secured personal instalment loans; this has affected the calculation of the midpoint rate. Included in Westpac Banking Corporation. Changes in the pricing policies of banks altered the basis for determining the indicator rate applying to small business term loans and overdrafts secured by assets other than residential property. The methodology used to calculate the overdraft indicator rate also changed from being the predominant rate of major to an arithmetic average. Transfer of some assets and liabilities to the nonbank sector. Transfer of approximately $2.4 billion of assets and liabilities from MMC to parent bank. Change in the small business overdraft products offered by a bank has altered the basis for determining the indicator rate applying to all small business overdraft series. Merger and acquisition activity in the Australian banking sector broadened the coverage of the bank fees survey from 1998. However, the greater coverage is estimated to have increased total bank fees in 1998 by less than 5 per cent. Jul 98 Aug 98 Reporting change Reclassification of items by a bank (or banks) Reporting change Sep 98 Jan 99 May 99 Sep 99 Mar 00 Jun 00 Jul 00 Reporting change Change in collection coverage Reporting change Transfer of assets and liabilities Reporting change Reporting change Reporting change Reclassification of items by a bank (or banks) Nov 00 Reclassification of items by a bank (or Introduction of a new off-balance sheet business reporting regime for AFIs. Reclassification of approximately $0.7 billion of ‘other’ personal loans to owner-occupied housing and investment housing. Introduction of a new off-balance sheet business reporting regime for AFIs. Introduction of a new off-balance sheet business reporting regime for AFIs. Change in the cash management account and term deposit products used to calculate indicator rates. Reporting change by a bank increased the number of debit card accounts. Transfer of approximately $2.2 billion of assets and liabilities from MMC to parent bank. Reporting change by a bank increased the number of credit card accounts. Change in off-balance sheet business reporting requirements for banks. Bank data reported as end-month, rather than monthly average. Reclassification of approximately $2.5 billion of ‘fixed’ personal loans and $2.6 billion of ‘overdraft’ personal loans to owner-occupied housing. Reclassification of approximately $1.4 billion of
May 98
Bank of Melbourne Limited no longer included separately Reporting change
Jun 98
NatWest Markets Australia Limited Transfer of assets and liabilities Change in collection coverage
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Dec 00 Jan 01 Nature of Change banks) Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Details deposits by a bank. Reclassification of approximately $2 billion of assets by a bank. Reclassification of approximately $2 billion of ‘fixed’ personal loans to ‘fixed’ business loans by a bank. Reclassification of approximately $0.7 billion of owner-occupied housing loans to investment housing loans by a bank. Reclassification of approximately $1.8 billion of assets by a bank. Apr 01 Transfer of assets and liabilities Reporting change Change in collection coverage Transfer of approximately $4.5 billion of assets and liabilities due to sale of a subsidiary by a bank. Reporting change by a bank decreased the number of debit card accounts. Addition of a bank to the sample used to calculate the rates on banks’ transaction accounts, cash management accounts and term deposits. Reclassification of approximately $0.7 billion of assets by a bank. Reclassification of approximately $1.4 billion of assets and liabilities by a bank. Acquisition of one bank by another resulted in a decrease in the number of debit card accounts. Reclassification of approximately $2.1 billion of assets and liabilities by banks. Removal of a bank from the sample used to calculate the rates on banks’ 3-year term deposits. Transfer of approximately $1.6 billion of assets between a bank and a subsidiary. Transfer of approximately $1.3 billion of assets and liabilities from NBFIs to a bank. Reclassification of approximately $3 billion of assets by banks. Transfer of approximately $0.8 billion between a bank and a related corporation. Breaks in series due to addition of reporting banks. Breaks also due to revised definitions and changes in reporting by incumbent reporting banks. Credit and charge card accounts, transactions, balances and limits are affected, particularly by the inclusion of charge cards from January 2002 onwards. Debit card accounts, purchases and ATM cash withdrawals are also affected. Financial aggregates are not affected. Reclassification of approximately $0.5 billion deposits from a related entity to a third party by a bank. Transfer of approximately $0.7 billion of assets between a bank and a related entity. Transfer of approximately $1.3 billion of deposits between banks and related entities. Introduction of a new off-balance sheet business reporting regime for banks. Introduction of a new data reporting regime for
May 01 Jun 01
Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reporting change
Jul 01 Aug 01 Sep 01
Reclassification of items by a bank (or banks) Change in collection coverage Transfer of assets Transfer of assets and liabilities
Dec 01 Jan 02
Reclassification of items by a bank (or banks) Transfer of assets and liabilities Reporting change and change in collection coverage
Feb 02
Reclassification of items by a bank
Mar 02
Transfer of assets Transfer of assets and liabilities Reporting change
Apr 02
Reporting change
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Nature of Change Reclassification of items by a bank (or banks) May 02 Jun 02 Transfer of assets and liabilities Transfer of assets and liabilities Reclassification of items by a bank (or banks) Jul 02 Transfer of assets and liabilities Details banks. Reclassification of approximately $1.8 billion deposits by a bank. Transfer of assets and liabilities between NBFIs and banks. Transfer of approximately $0.6 billion of assets and liabilities between NBFIs and banks. Reclassification of approximately $4 billion of deposits by banks. Transfer of approximately $0.6 billion of liabilities between NBFIs and banks. Transfer of approximately $0.9 billion of assets between banks and related entities. Aug 02 Sep 02 Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Transfer of assets and liabilities Oct 02 Transfer of assets and liabilities Reclassification of approximately $0.5 billion deposits by a bank. Reclassification of approximately $1.5 billion deposits by banks. Transfer of approximately $0.6 billion of deposits between banks and related entities. Transfer of approximately $0.5 billion of deposits between banks and related entities. Transfer of approximately $1.1 billion of assets between a bank and its subsidiary. Nov 02 Transfer of assets and liabilities Transfer of approximately $1.1 billion of deposits between banks and related entities. Transfer of approximately $1.1 billion of assets between a bank and its subsidiary. Reclassification of items by a bank (or banks) Dec 02 Transfer of assets Transfer of assets and liabilities Feb 03 Mar 03 Transfer of assets Transfer of assets Reporting change Reclassification of approximately $0.9 billion of deposits by a bank. Transfer of approximately $0.5 billion of loans between banks and related entities. Transfer of approximately $1.3 billion of assets and liabilities from NBFIs to a bank. Transfer of approximately $1.2 billion between a bank and its subsidiary. Transfer of approximately $2.7 billion between a bank and its subsidiary. Some series for international banking statistics for this quarter were derived using averages over several subsequent quarters. Addition of a bank to the sample used to calculate the rate on banks’ bonus savings accounts. Addition of a bank to the sample used to calculate personal lending and housing loan indicator rates. The methodology used to calculate the personal lending rates changed from the midpoint of all products offered by the major banks to the arithmetic average of standardised loan products. Reclassification of approximately $0.7 billion of assets by a bank. Reclassification of approximately $1 billion of deposits by a bank. Introduction of revised reporting form for banks. Reclassification of approximately $0.4 billion of
Apr 03 May 03
Change in collection coverage Reporting change
Reclassification of items by a bank (or banks) Jun 03 Jul 03 Aug 03 Reclassification of items by a bank (or banks) Reporting change Reclassification of liabilities
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Dec 03 Jan 04 Nature of Change Reporting change Transfer of assets Transfer of assets Transfer of liabilities Change in collection coverage Reporting change Mar 04 Acquisition of foreign claims and liabilities Details liabilities by a bank. Change in reporting of lending by a bank. Transfer of $2.2 billion between NBFIs and banks. Transfer of $3.1 billion between MMCs and banks. Transfer of $2.4 billion between MMCs and banks. Change in the products used to calculate the rate on banks’ cash management accounts. Change in reporting of lending by a bank. The acquisition of The National Bank of New Zealand Limited by Australia and New Zealand Banking Group Limited resulted in an increase in claims and liabilities in New Zealand of $34.4 billion and $30.1 billion, respectively. Reclassification of approximately $1.0 billion of loans by a bank. Transfer of approximately $1.5 billion of assets from an FCGF to a bank. Transfer of approximately $1.0 billion of assets from FCGFs to banks. Reclassification of approximately $1.3 billion of owner-occupied housing loans to investor housing loans by a bank. Transfer of approximately $0.6 billion of assets from FCGFs to banks. Reclassification of approximately $0.4 billion of loans by a bank. Reclassification of approximately $1.8 billion of deposits by banks. Reclassification of approximately $1.5 billion of loans by banks. Reclassification of approximately $1.0 billion of loans by a bank. Reclassification of approximately $1.0 billion of loans by a bank. Change in the products used to calculate the rate on banks’ cash management accounts. The sale of Northern Bank Limited by National Australia Bank Limited resulted in a decrease in claims and liabilities in the United Kingdom of $9.3 billion and $8.4 billion, respectively. The sale of National Irish Bank Limited by National Australia Bank Limited resulted in a decrease in claims and liabilities in Ireland of $6.8 billion and $4.2 billion, respectively. Apr 05 Feb 06 Mar 06 Jul 06 Change in collection coverage Transfer of assets Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reporting change Addition of a bank to the sample used to calculate the rate on banks’ bonus savings accounts. Transfer of approximately $2.3 billion of assets from an MMC to a bank. Reclassification of approximately $0.7 billion of loans by a bank. Reclassification of approximately $1.8 billion of loans by a bank. Changes to reporting forms due to incorporation of International Financial Reporting Standards (IFRS)
Reclassification of items by a bank (or banks) Apr 04 Jun 04 Transfer of assets Transfer of assets Reclassification of items by a bank (or banks) Jul 04 Aug 04 Sep 04 Oct 04 Dec 04 Jan 05 Transfer of assets Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Reclassification of items by a bank (or banks) Change in collection coverage Mar 05 Sale of foreign claims and liabilities
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Aug 06 Nature of Change Reclassification of items by a bank (or banks) Transfer of assets Sep 06 Oct 06 Reclassification of items by a bank (or banks) Transfer of assets Reporting change Nov 06 Dec 06 Jan 07 Transfer of assets Transfer of assets Reclassification of liabilities Details Reclassification of approximately $0.4 billion of loans by a bank. Transfer of approximately $0.6 billion of assets from an FCGF to a bank. A bank changed its reporting system which resulted in some loans being reclassified. Transfer of approximately $3.8 billion of loans from a bank to a related entity. Break in financial institution cheque series due to change in reporting by a bank. Transfer of approximately $0.6 billion of assets from an FCGF to a bank. Transfer of approximately $2 billion of loans from a bank to another entity. Reclassification of approximately $0.5 billion of liabilities by a bank. Reclassification of approximately $0.4 billion of liabilities by a bank. Feb 07 Reclassification of liabilities Transfer of assets Reclassification of items by a bank (or banks) Mar 07 Transfer of assets Reclassification of items by a bank (or banks) Reclassification of approximately $1.6 billion of liabilities by a bank. Transfer of approximately $0.6 billion of loans from an MMC to a bank. Reclassification of approximately $0.5 billion of loans by a bank. Transfer of approximately $0.7 billion of loans from an MMC to a bank. Reclassification of approximately $0.8 billion of loans by a bank. Reclassification of approximately $0.5 billion of loans by a bank. Reporting change and change in collection coverage Breaks in series are due to change in format of the RBA ‘Survey of Foreign Exchange and Derivatives Markets’ and a change to the number of reporting banks. Reclassification of approximately $0.8 billion of loans by a bank. Transfer of approximately $0.5 billion from an FCGF to a bank. Reclassification of approximately $0.4 billion of liabilities by a bank. Reclassification of approximately $0.9 billion of loans by a bank. Reclassification of approximately $0.5 billion of loans by a bank. Aug 07 Adjustment for double counting Exclusion of approximately $4.4 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $0.6 billion of loans by a bank. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $0.4 billion. Exclusion of approximately $2.6 billion of bank lending to non-traditional lenders and securitising trusts from business credit.
May 07
Reclassification of items by a bank (or banks) Transfer of assets Reclassification of liabilities
Jun 07
Reclassification of items by a bank (or banks)
Sep 07
Reclassification of items by a bank (or banks) Adjustment for double counting
Oct 07
Adjustment for double counting
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Nov 07 Nature of Change Adjustment for double counting Details Exclusion of approximately $1.3 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $0.8 billion of assets by a bank. Exclusion of approximately $0.7 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $2.3 billion of liabilities by a bank. Exclusion of approximately $4.8 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Change in reporting of lending by a bank. Reporting change by a bank decreased the number of credit card accounts. Feb 08 Adjustment for double counting Exclusion of approximately $2.9 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $0.4 billion. Break due to introduction of new reporting forms. Revised definitions affect credit and charge card purchases, cash advances, balances accruing interest and credit transfers. Reporting changes by several banks affect a range of series. Financial aggregates are not affected. Break due to the introduction of the Basel II capital framework on 1 January 2008. This involved new reporting forms as well as changes to the components of several series. Financial aggregates are not affected. Change in collection coverage Apr 08 Adjustment for double counting Breaks in credit and charge card series due to the addition of a bank to the collection. Exclusion of approximately $0.8 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $0.4 billion of loans by a bank. Exclusion of approximately $0.3 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $1.1 billion of liabilities by a bank. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $2.8 billion. Reclassification of approximately $3.3 billion of assets by a bank. Reclassification of approximately $12.4 billion of liabilities by a bank. Break in the number of debit card accounts due to a reporting change by a bank. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $1.0 billion. Reclassification of approximately $1.8 billion of
Reclassification of items by a bank (or banks) Dec 07 Adjustment for double counting
Reclassification of liabilities Jan 08 Adjustment for double counting
Reporting change
Mar 08
Adjustment for double counting Reporting change
Reclassification of items by a bank (or banks) May 08 Adjustment for double counting
Reclassification of items by a bank (or banks) Jun 08 Adjustment for double counting Reclassification of assets Reclassification of liabilities Jul 08 Reporting change Adjustment for double counting Reclassification of items by a bank (or
(b) Breaks in Series Due to Other Changes in Bank Reporting Date Aug 08 Nature of Change banks) Adjustment for double counting Reclassification of items by a bank (or banks) Details assets by banks. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $2.6 billion. Reclassification of approximately $1.3 billion of assets by a bank. Reclassification of approximately $0.6 billion of liabilities by a bank. Sep 08 Adjustment for double counting Exclusion of approximately $2.3 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $4.1 billion of assets by a bank. Reclassification of approximately $3.5 billion of liabilities by a bank. Oct 08 Adjustment for double counting Reporting change Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $0.5 billion. Change in reporting of lending by a bank. Reporting change by a bank increased the number and value of own ATM withdrawals. Nov 08 Adjustment for double counting Exclusion of approximately $1.1 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Exclusion of approximately $0.4 billion of bank lending to non-traditional lenders and securitising trusts from business credit. Reclassification of approximately $2.1 billion of assets by a bank. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $3.7 billion. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $0.7 billion. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $0.4 billion. Change in reporting of lending by a bank. Reclassification of assets and liabilities due to merger. Transfer of approximately $3.9 billion between an FCGF and a bank. Reduction in bank lending to non-traditional lenders and securitising trusts of approximately $1.0 billion. Reclassification of approximately $0.6 billion of liabilities by a bank. Exclusion of approximately $0.1 billion of bank lending to non-traditional lenders and securitising trusts for business credit. Transfer of approximately $3.1 billion between an FCGF and a bank. Reclassification of assets by a bank.
Reclassification of items by a bank (or banks)
Dec 08
Adjustment for double counting
Reclassification of items by a bank (or banks) Jan 09 Feb 09 Mar 09 Adjustment for double counting Adjustment for double counting Adjustment for double counting Reporting change Reclassification of items by a bank (or banks) Transfer of assets Apr 09 Adjustment for double counting Reclassification of items by a bank (or banks) May 09 Adjustment for double counting
Transfer of assets Reclassification of items by a bank (or banks)
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date Nature of Change Details
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date Aug 76 Feb 83 Nature of Change Change in collection coverage Change in collection coverage Details Addition of CUBS data to M3 coverage resulting in approximately $4.5 billion increase in M3 level. Cash management trusts included in financial aggregates. This added $1 493 million to loans and advances by all financial intermediaries and credit in February 1983. Identifiable transactions between other corporations in the same category excluded. Exclusion of a group of permanent building societies in liquidation. Several intra-group financiers removed from FCA Register of Corporations or exempted from application of the FCA. Addition of a mortgage manager’s rates to the series. Addition of a mortgage manager’s rates to the series. Addition of a mortgage manager’s rates to the series. Authorised money market dealers no longer included; their accreditation was revoked on 9 August 1996. Addition of a mortgage manager’s rates to the series Transfer of approximately $5.2 billion of assets to the MMC category from another FCA category. Addition of a mortgage manager’s rates to the series. Change in accounting system of an MMC following a recent merger with another MMC. Addition of a mortgage manager’s rates to the series. Introduction of a new off-balance sheet business reporting regime for AFIs. Change in accounting system of an MMC following a merger. Introduction of a new off-balance sheet business reporting regime for AFIs. Introduction of a new off-balance sheet business reporting regime for AFIs. Addition of a mortgage manager’s rates to the series. Special Service Providers no longer registrable under the FCA. Withdrawal of a mortgage manager’s rates from the series. The threshold for inclusion was increased from assets of $5 million to assets of $50 million. This change reduced the total reported assets by the following approximate amounts: credit unions: $3 050 million building societies: $140 million money market corporations: $2 930 million finance companies: $490 million general financiers: $330 million
Jun 84 Dec 92 Mar 93
Change in collection coverage Change in collection coverage Change in collection coverage
Nov 94 Mar 95 Jun 95 Aug 96
Change in collection coverage Change in collection coverage Change in collection coverage Change in collection coverage
Change in collection coverage Sep 97 Oct 97 Jul 98 Change in collection coverage Change in collection coverage Reporting change Change in collection coverage Reporting change Aug 98 Reporting change Reporting change Sep 98 Nov 98 Sep 99 Nov 99 Dec 99 Reporting change Change in collection coverage Change in collection coverage Change in collection coverage Change in collection coverage
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date Nature of Change Reporting change Details pastoral finance companies: $160 million. Credit unions and building societies use new forms to report data to APRA. Reclassification of housing lending formerly classified as personal and business lending. Change in accounting system of an MMC. Change in accounting system of an MMC. Non-bank data reported as end-month, rather than average of last two end-month figures. Transfer of approximately $4.7 billion of assets and liabilities to the MMC category from another FCA category. Entry of four credit unions. Addition of a mortgage manager’s rates to the series. Entry of new general financier. Entry of new FCA institutions. Transfer of approximately $1.8 billion of assets and liabilities between an MMC and a subsidiary. Entry of new general financiers. Entry of new general financiers. Transfer of approximately $1.8 billion of assets and liabilities between an MMC and a subsidiary. Entry of new FCA institutions. Introduction of a new data reporting regime for credit unions and building societies. Entry of new FCA institutions. Breaks in series due to addition of reporting institutions, including building societies, credit unions and other non-bank reporting organisations. These breaks affect credit and charge card accounts, transactions, balances and limits, and debit card accounts, purchases and ATM cash withdrawals. Financial aggregates are not affected. Reclassification of approximately $0.9 billion by an institution. Addition of a mortgage manager’s rates to the series. Entry of new FCGFs. Reclassification of approximately $5 billion deposits by an MMC. Reclassification of approximately $6 billion of assets by institutions. Entry of new FCGFs. Transfer of approximately $1 billion of loans between an MMC and a related entity. Entry of new FCGFs. Reclassification of $1.1 billion of assets by an FCGF. Introduction of a new data reporting regime for RFCs. Transfer of approximately $0.7 billion between
Mar 00 Jun 00 Jul 00 Aug 00
Reporting change Reporting change Reporting change Change in collection coverage
Jan 01
Change in collection coverage Change in collection coverage
Feb 01 May 01 Jun 01
Change in collection coverage Change in collection coverage Change in collection coverage Change in collection coverage
Jul 01
Change in collection coverage Change in collection coverage
Sep 01 Oct 01 Dec 01 Jan 02
Change in collection coverage Reporting change Change in collection coverage Change in collection coverage
Apr 02 Jun 02 Sep 02
Reclassification of assets and liabilities Change in collection coverage Change in collection coverage Reclassification of liabilities
Nov 02 Jan 03
Reclassification of assets Change in collection coverage Transfer of assets
Feb 03 Mar 03 Apr 03
Change in collection coverage Reclassification of assets Reporting change Transfer of assets
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date May 03 Jun 03 Aug 03 Sep 03 Nature of Change Transfer of assets Transfer of assets Transfer of assets Change in collection coverage Details MMCs and related entities. Transfer of approximately $0.4 billion between an FCGF and related entity. Transfer of approximately $1.0 billion between MMCs and related entities. Transfer of approximately $0.5 billion between MMCs and related entities. Change in the products offered by a mortgage manager. This alters the composition of the mortgage managers’ indicator rate series. Exit of a number of FCGFs. Transfer of approximately $0.5 billion between FCGFs and related entities. Transfer of approximately $0.7 billion between MMCs and related entities. Nov 03 Reclassification of assets Transfer of assets Mar 04 Aug 04 Oct 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 Apr 05 May 05 Jul 05 Aug 05 Dec 05 Feb 06 Apr 06 Jun 06 Change in collection coverage Transfer of assets and liabilities Transfer of assets Reclassification of assets Change in collection coverage Change of items by an MMC Reclassification of assets Transfer of assets Transfer of assets Transfer of assets Change in collection coverage Change in collection coverage Change in collection coverage Change in collection coverage Transfer of assets Reclassification of liabilities Transfer of assets Jul 06 Reporting change Reclassification of liabilities Aug 06 Reclassification of assets Reclassification of $0.4 billion by an MMC. Transfer of approximately $1.5 billion between MMCs and related entities. Entry of a new FCGF. Exit of an MMC. Conversion of a number of RFCs to SCCIs. Financial aggregates are not affected. Transfer of approximately $0.6 billion between an FCGF and a related entity. Reclassification of $1.0 billion by an MMC. Entry of a new FCGF. Reporting change of approximately $1.8 billion of loans by an MMC. Reclassification of approximately $0.9 billion of deposits by an MMC. Transfer of approximately $0.5 billion of loans between MMCs and related entities. Transfer of approximately $0.4 billion of loans between MMCs and related entities. Transfer of approximately $0.4 billion of loans between MMCs and related entities. Entry of new FCGFs. Entry of new FCGFs. Entry of a new FCGF. Entry of new FCGFs. Transfer of approximately $0.4 billion of assets between an MMC and a related entity. Reclassification of approximately $1.0 billion of deposits by an MMC. Transfer of approximately $0.8 billion of loans between an MMC and a related entity. Changes to reporting forms due to incorporation of International Financial Reporting Standards (IFRS) Reclassification of approximately $1.1 billion of rural debt by an FCGF. Reclassification of approximately $2.7 billion of assets by an FCGF.
Oct 03
Change in collection coverage Transfer of assets
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date Nature of Change Reclassification of liabilities Sep 06 Oct 06 Nov 06 Reclassification of assets Change in collection coverage Transfer of assets Transfer of liabilities Dec 06 Change in collection coverage Transfer of assets Mar 07 Reclassification of liabilities Reporting change and change in collection coverage Details Reclassification of approximately $2.3 billion of liabilities by an FCGF. Reclassification of approximately $0.5 billion of assets by an MMC. Entry of new FCGFs. Reclassification of approximately $3.2 billion of assets by an MMC. Transfer of approximately $1.7 billion of liabilities to an FCGF from a related entity. Entry of new FCGFs. Transfer of approximately $0.5 billion of loans from an FCGF to another entity. Reclassification of approximately $1.3 billion of liabilities by an MMC. Breaks in series are due to change in format of the RBA ‘Survey of Foreign Exchange and Derivatives Markets’ and a change to the number of reporting non-banks. Exit of an FCGF. Reclassification of $0.9 billion of liabilities by an MMC. Entry of new FCGFs. Entry of a new FCGF. Entry of a new FCGF. Reclassification of approximately $0.3 billion of liabilities by an FCGF. Entry of a new FCGF. Break in direct entry payments series due to the addition of a non-bank to the collection. Break in credit and charge card series due to the addition of a non-bank to the collection. Reclassification of liabilities Reporting change Reclassification of approximately $0.3 billion of liabilities by an FCGF. Break due to introduction of new reporting forms. Revised definitions affect credit and charge card purchases, cash advances, balances accruing interest and credit transfers. Reporting changes by several non-banks affect a range of series. Financial aggregates are not affected. Reporting change by a non-bank increased the number and value of debit card transactions. Apr 08 Reclassification of assets Change in collection coverage Reclassification of approximately $1.0 billion of assets by an MMC. Break due to an MMC now reporting on a consolidated basis. Financial aggregates are not affected. Reclassification of approximately $1.4 billion of liabilities by an MMC. Entry of new FCGFs. Reclassification of approximately $1.0 billion of assets by an MMC. Entry of a new FCGF. Entry of new FCGFs.
Apr 07 May 07 Jun 07 Jul 07 Aug 07
Change in collection coverage Reclassification of liabilities Change in collection coverage Change in collection coverage Change in collection coverage Reclassification of liabilities
Mar 08
Change in collection coverage
May 08
Reclassification of liabilities Change in collection coverage
Jun 08 Jul 08 Aug 08
Reclassification of assets Change in collection coverage Change in collection coverage
(c) Breaks in Series Due to Changes in Coverage and Reporting of Non-banks*** Date Oct 08 Nov 08 Feb 09 Nature of Change Reclassification of assets Reclassification of assets Reclassification of assets Reclassification of liabilities Mar 09 May 09 Transfer of assets Transfer of assets Details Reclassification of approximately $0.7 billion of assets by an MMC. Reclassification of assets by a credit union. Reclassification of assets by an MMC. Reclassification of approximately $1.5 billion of liabilities by an FCGF. Transfer of approximately $3.9 billion between an FCGF and a bank. Transfer of approximately $3.1 billion between an FCGF and a bank.
*
More detailed explanation of the impact of breaks is contained in the ‘Technical Note: Series Breaks in Bank, NBFI and Financial Aggregates Tables’ in the Bulletin, December 1992. While all new banks are shown in Table (a), some smaller breaks are not listed in Tables (b) and (c). Date refers to the first month in which the institution reported as a bank.
**
*** Other than the counterpart breaks associated with the conversion of NBFIs to banks and transfer of assets and liabilities from NBFIs to banks.