Building Societies – Selected Assets and Liabilities

Building societies 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 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. From October 2001, data are derived from ARF 323.0: Statement of Financial Position (Licensed ADI). Since December 1999, series have only included data for building societies with total assets greater than or equal to $50 million.

Selected assets:

‘Cash and liquid assets’ is composed of ‘Cash’, ‘Balances with ADIs’ and ‘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.

‘Other’ includes deposits at call with Registered Financial Corporations (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 households, 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 households 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 non-bank financial institutions (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.



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