Liabilities and Assets – Weekly

\n\n**Liabilities:** \n:Capital and Reserve Bank Reserve Fund-C/ whereby the Reserve Bank\nReserve Fund (RBRF) is a general reserve. RBRF provides for potential losses\narising from events which are contingent and non-foreseeable, mainly those\nwhich arise from movements in market values of the RBA-C/s holdings of\nAustralian dollar and foreign securities as well as from fraud and other non-\ninsured losses or events. On 1 July 2001 the amount of $3 323 million\n(Contingencies and General Purpose Reserve) was transferred from :Other\nliabilities-C/ to :Capital and Reserve Bank Reserve Fund-C/.\n\nPrior to July 1996 the series :Exchange settlement balances-C/\nprimarily reflected deposits of Australian banks, comprising non-callable\ndeposits and, prior to September 1988, Statutory Reserve Deposits and deposits\nby savings banks. The Statutory Reserve Deposit requirement on trading banks\nwas removed in 1988 and the non-callable deposit requirement was abolished in\nJuly 1999. The Bank commenced paying interest on Exchange settlement balances\nin July 1996.\n\n:RB term deposits-C/ are short-term deposits of institutions\nholding an Exchange Settlement Account and authorised deposit-taking\ninstitutions that are members of RITS.:Deposits of overseas\ninstitutions-C/ and :Governments and instrumentalities-C/\ninclude the IMF and central banks.\n\n:Other liabilities-C/ include provisions, current year profit/loss,\nthe counterpart obligation arising from transactions in repurchase agreements,\nand obligations arising from the outright purchase of securities which have\nbeen contracted but not yet settled.\n\n**Assets:** \n:Gold and foreign exchange-C/ assets include foreign exchange\nholdings invested in government securities and bank deposits, market value of\nopen forward foreign exchange contracts and IMF Special Drawing Rights.\nSecurities sold but contracted for purchase under repurchase agreements are\nretained on the balance sheet in this category.\n\n:Clearing items-C/ include cheques and bills of other banks, bills\nreceivable and remittances in transit. They may also include amounts owed to\nthe Bank for overnight clearances of financial transactions.\n\n:Australian dollar securities-C/ include Commonwealth Government\nSecurities (CGS) and securities issued by central borrowing authorities of\nstate and territory governments. Securities sold but contracted for purchase\nunder sell repurchase agreements are retained on the balance sheet in this\ncategory. Also included are Australian dollar securities purchased but\ncontracted for sale under buy repurchase agreements, being: eligible bank\nbills, certificates of deposit and debt securities of ADIs; Australian dollar-\ndenominated securities issued by certain foreign governments, foreign\ngovernment agencies and by highly rated supranational organisations; and\nselected Australian dollar domestic residential and commercial mortgage-backed\nsecurities, asset-backed commercial paper and corporate securities.\n\n:Other assets-C/ include the Bank-C/s holdings of Australian\nnotes and coins, Bank premises and other durable assets, and the Bank-C/s\nshareholding in the Bank for International Settlements.\n\n