Reserve Bank of Australia Annual Report – 1961 Financial Statements Annual Accounts

Balance Sheets

The balance sheets of the various sections of the Reserve Bank at 30th June, 1961, appear on pages 32–33 and 34–35 of this Report, together with comparative figures at 30th June, 1960.

The following is a brief description of some of the items contained in the statements.

Central Banking Business

Deposits, bills payable and all other liabilities—Deposits of overseas institutions. As indicated in the explanatory notation on page 34, this item includes deposits of governments and central banks of other countries and of international institutions. This year's figures include an additional £78 million held for the International Monetary Fund in respect of Australia's recent drawing from the Fund.

Deposits, bills payable and all other liabilities—Other. Balances held for various Australian governments and other central banking customers not shown specially in the statement appear under this heading. It also includes provisions for contingencies and all other liabilities.

Loans, advances and bills discounted. Advances to Rural Credits Department under Section 61 of the Reserve Bank Act and to other central banking customers are shown under this heading.

Rural Credits Department

All other liabilities. This item includes £70 million borrowed from the Central Bank, deposits of customers temporarily in credit and provisions for contingencies.

Aggregate Balance Sheet

In the aggregate balance sheet, inter-departmental accounts amounting to £70,360,920 have been offset. The major part of this amount represents advances by the Central Bank to the Rural Credits Department.

Profits

Details of net profits after deducting amounts written off bank premises and amounts provided for contingencies are shown in the following table.

Of the net profits £16,282,780 was paid to the Commonwealth of Australia, £3,569,461 to the Reserve Funds of the Bank and £217,067 to the Rural Credits Development Fund.

A comparison of the net profits of the various sections with those earned in the previous year is shown in the accounts set out on pages 32 and 33 of this Report. The increase in profits of the Central Banking Business and Note Issue Department can be attributed mainly to higher interest rates, particularly on investments in London.

The Reserve Bank has no statutory obligation to pay local rates but voluntary contributions, equivalent to the amount which would have otherwise been due, have been made to the local authorities concerned.

BOARD MEMBER'S DEATH

The sudden death of Mr. G.H. Grimwade on 22nd February, 1961, is recorded by the Board with its deep regret. Mr. Grimwade had been a member of the Board since it was reconstituted in 1951.