Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p49
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 180941–184839

trade transactions. The finance relates to and is directly underpinned by the movement of goods or the provision of services such as documentary trade letters of credit, documentary and clean collection, import bills, export bills and shipping guarantees.

                                                   A typical relationship is where the intermediary provides upfront payment to an exporter, and allows the importer to repay this credit once delivery is confirmed.

Trading book                                       Means positions in financial instruments that are held either with trading intent or to hedge other elements of the trading book. Positions held with trading intent are those which:

                                                        * are held for short-term resale; or
                                                        * are taken on with the intention of benefiting in the short-term from actual and/or expected differences between their buying and selling prices, or from other price or interest rate variations; or
                                                        * arise from broking and market-making.

                                                   For an ADI this will include positions in financial instruments that meet the requirements of Prudential Standard APS 116 Capital Adequacy: Market Risk (APS 116).

Transaction deposits                               Means all deposits that are directly accessible and exchangeable for notes and coins on demand at par and without penalty or restriction.

                                                   The funds are directly accessible if they can be withdrawn or used to make payments to a third party by draft, giro order, direct debit/credit, cheque or another direct payment facility on demand.

                                                   Examples of penalties or restrictions include limits on the value or volume of withdrawals in a given period and penalty fees or loss of bonus interest for withdrawals or other access to make payments.

                                                   It includes:

                                                        * accounts from which payments may be made to third parties (e.g. Automated Teller Machines, cheque, debit card or another electronic device); and
                                                        * savings deposits linked to an account from which payments may be made to third parties (e.g. Automated Teller Machines, debit card or another electronic device) where funds may be transferred to the linked account almost instantaneously and subsequently withdrawn or transferred to a third party on demand without penalty.

Transaction fees charged                           Means fees charged that relate to transactions made, generally charged to the party initiating the transaction.

                                                   For deposits it includes fees charged on:

                                                        * branch-assisted withdrawals and deposits;
                                                        * cheque payments and cashing, including bank cheques;
                                                        * EFTPOS, BPAY, direct debit and/or periodic payments; and
                                                        * ATM, internet or telephone banking transactions, including withdrawals, deposits and balance enquiries.

                                                   For loans and finance leases it includes fees charged on: drawdowns and redraws on loans and finance leases.

Travel, accommodation and entertainment expenses   Travel expenses are costs incurred for transportation services relating to business activities that occur away from the normal place of business. These costs are only to be included if they are incurred in connection with business