Document ID: chunk:federal_register_of_legislation:F2018L01116:body:0:p10
Version: federal_register_of_legislation:F2018L01116
Segment Type: other
Provision Reference: 
Character Range: 27273–31209

unincorporated businesses) or financial institutions.

Other counterparties              Means any other counterparty that is not a 'Household', 'Community service organisation', 'General government', 'Financial institutions' or 'Non-financial businesses'.

Definitions of Deposit Types

Deposits                          Means non-negotiable contracts that represent the placement of funds available for later withdrawal.

                                  It includes:

                                       * account balances with banks, non-bank ADIs and registered financial corporations (including transaction deposits, fixed-term deposits and other non-transaction deposits);
                                       * purchased payment facilities such as smart cards and electronic cash; and
                                       * non-negotiable certificates of deposit.

                                  It excludes:

                                       * holdings of physical currency (holdings of notes and coins);
                                       * negotiable certificates of deposit (a type of debt security);
                                       * payables due to counterparties arising from the first leg of a repurchase agreement;
                                       * treasury-related short-term borrowings from other banks;
                                       * commercial paper;
                                       * arranged overdrafts. These are generally an agreed arrangement between a lender and a borrower to extend credit when the balance in an attached transaction account falls below zero; and
                                       * unarranged overdrafts. These refer to the situation when a transaction account holder withdraws an amount greater than the balance of the account leaving a negative balance. The lender usually charges an overdrawn account fee as well as interest on the negative balance, and usually requires the account holder to restore the account's positive balance.

Farm management deposit account   Has the same meaning as in Banking Regulation 2016.

Fixed-term deposits               Means an account in which money has been placed for a fixed period for a stated interest rate.

                                  It includes:

                                       * term deposits;
                                       * fixed-term deposits with a notice of withdrawal requirement; and
                                       * non-negotiable certificate of deposits.

                                  It excludes:

                                       * non-transaction deposits that do not have a fixed term.

Offset accounts                   Means where a borrower has a separate deposit account and a loan (usually a housing loan) with the same institution. Instead of receiving interest on the deposit account, the interest payment due on the loan is calculated on the net balance of the loan (credit outstanding on the loan less any amount in the deposit account).

                                  Offset accounts typically refers to the value in the deposit account.

Non-protected accounts            Has the meaning given in subsections 5(5), (6) and (7) of the Banking Act.

Non-transaction deposits          Means all customers' deposits, other than transaction deposits. Non-transaction deposits have limited access (e.g. only a limited number or value of withdrawals may be made from the account in a given period), incur penalties or fees (e.g. the loss of bonus interest, withdrawal fees), or have other restrictions on use of funds for payment or withdrawal.

                                  It includes:

                                       * fixed-term deposits;
                                       * notice of withdrawal accounts, for which there is no fixed term but for which written notice is required at least the day