Document ID: chunk:federal_register_of_legislation:F2017L01028:body:0:p13
Version: federal_register_of_legislation:F2017L01028
Segment Type: other
Provision Reference: 
Character Range: 33983–37228

all positive fair values of derivative contracts outstanding after taking account of legally enforceable bilateral netting agreements) as this ensures consistency not only with the BIS OTC derivatives statistics but also with the valuation principles for all other on- and off-balance sheet items in the BIS international financial statistics. Negative fair values of derivative contracts are considered to represent financial liabilities and are therefore by definition excluded from the reporting of claims.

Note: This definition of derivative contracts differs to that used in ARF 731.1.

Foreign currency refers to claims or liabilities of an Australian office not in AUD, and claims of offshore offices not in the currency of the host country (for example, claims of a New Zealand domiciled subsidiary denominated in AUD or USD).

General government refers to federal, state and local government and social security funds both in Australia and overseas (the general government sector), and non-profit institutions financed by general government. Exclude public non-bank financial institutions and public non-financial corporations. These should be classified as non-bank financial institutions or non-financial corporations, respectively. Exclude central banks and international organisations (including multilateral development banks). These should be classified as central banks.

Guarantees represent contingent liabilities arising from an irrevocable obligation to pay to a third party beneficiary when a client fails to perform some contractual obligations. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and stand-by letters of credits, acceptances and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit derivative contracts.

Guarantees should be reported to the extent that they represent the unutilised portions of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claim would have an impact on total cross-border claims and local claims in any currency.

Households and non-profit institutions serving households (NPISHs) refers to households, non-profit entities such as charities, religious institutions, trade unions and consumer associations. Also include unincorporated enterprise owned by households.

Immediate borrower claims refers to all on-balance sheet financial claims, excluding derivative contracts and lending of securities, gold and other precious metals without cash collateral.

Inwards risk transfer is a risk transfer that reallocates the claim into the country being reported. Examples of risk transfers are shown in the attachment.

Local claims refers to claims of an Australian office on Australian residents, and claims of offshore offices on residents of the host country (for example, the claims on New Zealand residents of a New Zealand domiciled subsidiary).

Locational statistics – See section Background to the international exposures forms.

Maturity refers to the residual maturity of on-balance claims.

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