Banks – Consolidated Group Impaired Assets

    

These data are derived from returns submitted to the Australian Prudential
Regulation Authority (APRA) by banks authorised under the Banking Act 1959.
APR assumed responsibility for the supervision and regulation of banks on 1A
July 1998. Data prior to that date were submitted to the RBA.

Prior to March 2002, banks reported to APR on the _Impaired Assets Return_.
From that date, banks report quarterly on _ARF 220.0: Impaired Assets_.

aConsolidated groupa, 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.

aTotal assetsa includes the total on-balance sheet assets reported to APR by
locally incorporated banks for capital adequacy purposes, and the assets of
the Australian bank operations of foreign bank branches.

aImpaired assetsa refers to the aggregate of a reporting bankas 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 that cannot be
cancelled or revoked and the credit equivalent amounts of interest rate,
foreign exchange and other market-related instruments.

aNon-accrual itemsa 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.

aRestructured itemsa 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 customersa financial
difficulties, which render the facilities anon-commerciala to the bank.

aOther real estate owneda (OREO) refers to real estate acquired through
security enforcement or otherwise as settlement for outstanding obligations.
Excluded are properties controlled under amortgagee in possessiona rights.

aOther assets acquireda refers to all other assets acquired through security
enforcement or otherwise as settlement for outstanding obligations.

aWrite-offsa refers to the aggregate value of items written off against
provisions or profits during the period.

aPast-due itemsa refers to items that 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.

aSpecific provisionsa includes specific provisions raised against impaired
assets as well as those raised against portfolios of loans based on arrears
data.

aGeneral provisionsa are reported net of associated future income tax
benefits. Foreign bank branches do not report general provisions.

For further information, refer RB Media Release of 18 January 1995
(reprinted in the February 1995 issue of the _Bulletin_).



Tags: banks, finance, rba, statistics
Organization: Reserve Bank of Australia