Banks – Consolidated Group Impaired Assets

\n\nThese data are derived from returns submitted to the Australian Prudential\nRegulation Authority (APRA) by banks authorised under the Banking Act 1959.\nAPR assumed responsibility for the supervision and regulation of banks on 1A\nJuly 1998. Data prior to that date were submitted to the RBA.\n\nPrior to March 2002, banks reported to APR on the _Impaired Assets Return_.\nFrom that date, banks report quarterly on _ARF 220.0: Impaired Assets_.\n\naConsolidated groupa, for a locally incorporated bank, refers to the global\noperations of the bank and its subsidiaries, excluding those involved in\ninsurance, funds management/trustee and non-financial business. For a foreign\nbank authorised to operate in Australia as a branch, the data relate to the\noperations of the branch only.\n\naTotal assetsa includes the total on-balance sheet assets reported to APR by\nlocally incorporated banks for capital adequacy purposes, and the assets of\nthe Australian bank operations of foreign bank branches.\n\naImpaired assetsa refers to the aggregate of a reporting bankas non-accrual\nand restructured exposures, both on- and off-balance sheet, plus any assets\nacquired through the enforcement of security conditions. Off-balance sheet\nexposures include, _inter alia_, commitments to provide funds that cannot be\ncancelled or revoked and the credit equivalent amounts of interest rate,\nforeign exchange and other market-related instruments.\n\naNon-accrual itemsa refers to exposures on which income may no longer be\naccrued ahead of its receipt because there is doubt about the ultimate\ncollectibility of principal and/or interest. Included are facilities where\ncontractual payments of principal and/or interest are 90 or more days in\narrears (or which have remained continuously outside approved limits for 90 or\nmore days) and the associated security is insufficient to cover payment of\nprincipal and accrued interest.\n\naRestructured itemsa refers to exposures, not classified as non-accrual, where\nthe original contractual terms have been modified to provide for concessions\nof interest or principal, for reasons related to customersa financial\ndifficulties, which render the facilities anon-commerciala to the bank.\n\naOther real estate owneda (OREO) refers to real estate acquired through\nsecurity enforcement or otherwise as settlement for outstanding obligations.\nExcluded are properties controlled under amortgagee in possessiona rights.\n\naOther assets acquireda refers to all other assets acquired through security\nenforcement or otherwise as settlement for outstanding obligations.\n\naWrite-offsa refers to the aggregate value of items written off against\nprovisions or profits during the period.\n\naPast-due itemsa refers to items that are 90 or more days in arrears but are\nwell secured and have no provisions held against them. Items classified as\nimpaired assets are excluded.\n\naSpecific provisionsa includes specific provisions raised against impaired\nassets as well as those raised against portfolios of loans based on arrears\ndata.\n\naGeneral provisionsa are reported net of associated future income tax\nbenefits. Foreign bank branches do not report general provisions.\n\nFor further information, refer RB Media Release of 18 January 1995\n(reprinted in the February 1995 issue of the _Bulletin_).\n\n