Assets of Australian-located Operations

\n\nIn March 2003, banks and selected Registered Financial Corporations (RFCs)\nbegan reporting their international assets, liabilities and country exposures\nto APR in ARF/RRF 231 International Exposures. This return is the basis of\nthe data provided by Australia to the Bank for International Settlements (BIS)\nfor its International Banking Statistics (IBS) data collection. APR ceased\nthe RFC data collection after September 2010.\n\nThe IBS data are based on the methodology described in the [BIS Guide on\nInternational Financial Statistics\n[PDF]](http://www.bis.org/statistics/intfinstatsguide.pdf) (see Part II\nInternational banking statistics). Data reported for Australia, and other\ncountries, on the BIS website are expressed in United States dollars (USD).\n\nData are recorded on an end-quarter basis.\n\nAll banks operating in Australia complete ARF 231. Between March 2003 and\nSeptember 2010, only those larger RFCs with sizeable overseas assets and/or\nliabilities completed RRF 231. Bank and RFC positions are reported in\nAustralian dollars (AUD). Non-AUD denominated positions have been converted to\nAUD using an appropriate end-quarter exchange rate, so changes in reported\ndata between quarters are due not only to changes in positions but also\nvaluation gains or losses due to exchange rate changes.\n\nThere are two sets of IBS data: locational data, which are used to gauge the\nrole of banks and financial centres in the intermediation of international\ncapital flows; and consolidated data, which can be used to monitor the country\nrisk exposure of national banking systems. Only locational data are reported\nin this statistical table and all assets are reported at market value. A\n\nThe locational data presented in this statistical table may differ from the\nbalance sheet data reported by banks (and RFCs between March 2003 and\nSeptember 2010) in their ARF/RRF 320.0 Statement of Financial Position return\nto APR (and published in statistical tables B2, B3, B9 and B10). ARF/RRF 231\nasks for gross positions to be reported (including on-balance sheet\nderivatives). However, in ARF/RRF 320.0, derivative positions can be reported\non a net asset or net liability basis. This difference is particularly\nrelevant in the case of foreign currency derivative positions with residents\nin Australia (included in other assets and other liabilities in the locational\ndata).\n\nData are shown for a selected group of countries that account for the bulk of\nthe total. Similar data for other countries are also available in statistical\ntable B12.1.1.\n\nThe positions by country are summed to produce a aTotal non-residentsa figure\nthat represents reporting entitiesa total positions with offshore\ncounterparties in all currencies. The positions shown for Australia are\npositions with residents in foreign currency.\n\naLoansa comprise those financial assets that are created through the lending\nof funds by a creditor (lender) to a debtor (borrower) and that are not\nrepresented by negotiable securities.\n\nSale and repurchase transactions (repos) involving the sale of assets (e.g.\nsecurities and gold) with a commitment to repurchase the same or similar\nassets, financial leases, promissory notes, non-negotiable debt securities,\nendorsement liabilities arising from bills rediscounted abroad and\nsubordinated loans (including subordinated non-negotiable debt securities) are\nalso included as aLoansa.\n\naDebt securities helda are all negotiable short- and long-term debt\ninstruments (including negotiable certificates of deposit, but excluding\nequity shares, investment fund units and warrants). Also included are those\ninternational debt securities held in an entityas own name but on behalf of\nthird parties as part of trustee business. Debt securities held on a purely\ncustodial basis for customers and debt securities acquired in the context of\nsecurities lending transactions without cash collateral are not included in\nthe data on holdings of debt securities. The borrowing of securities that are\nsubsequently sold to third parties may result in negative holdings of\nsecurities.\n\naOther assetsa mainly comprise equity shares (including mutual and investment\nfund units and holdings of shares in a reporting entityas own name but on\nbehalf of third parties), participations, on-balance sheet derivative\ncontracts and working capital supplied by head offices to their branches\nabroad.\n\nNegative asset positions may be reported due to short selling of securities\nacquired in the context of repo or bond lending transactions.\n\nReporting entitiesa holdings of international notes and coin that are in\ncirculation and commonly used to make payments are recorded as claims in the\nform of loans and deposits. Loans that have become negotiable de facto are\nclassified under debt securities.\n\n