Reserve Bank of Australia Annual Report – 1962 Financial Statements Annual Accounts

The balance sheets of the various sections of the Reserve Bank at 30th June, 1962, appear on pages 32–33 and 34–35 of this Report, together with comparable figures at 30th June, 1961.

Central Banking Business

Deposits, bills payable and all other liabilities—Other deposits of trading banks: In addition to the ordinary deposit accounts of the trading banks, this item now includes the Term Loan Fund Accounts which were established for the major trading banks during the year.

Deposits, bills payable and all other liabilities—Deposits of overseas institutions: As shown in the note on page 34, deposits of governments and central banks of other countries and of international financial institutions are included under this heading. The fall in this year's balances reflects the repayment of £78 million to the International Monetary Fund in respect of Australia's third drawing.

Deposits, bills payable and all other liabilities—Other: This item consists of balances held for various Australian governments and other central banking customers not shown specially in the statement, provisions for contingencies and miscellaneous items.

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 include £45 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 £44,790,971 have been offset. This amount consists mainly of advances by the Central Bank to the Rural Credits Department.

Profits

Net profits of the various sections of the Bank, after deducting amounts written off bank premises and amounts provided for contingencies, are as follows:

Of the net profits, £20,237,287 was paid to the Commonwealth of Australia, £2,421,188 to the Reserve Funds of the Bank and £234,724 to the Rural Credits Development Fund.

A comparison of the net profits with those earned in the previous year is shown on pages 32 and 33 of this Report. Profit from Central Banking Business was influenced by a lower average of assets held in Australia and the counter effect of a higher average level of investments and interest rates in London. The increase in profit in the Note Issue Department can be attributed mainly to higher interest rates earned on investments, particularly in London.

The Reserve Bank is not required to pay rates to local governing bodies but voluntary contributions, equivalent to the amounts which would have otherwise been levied, have been made to the authorities concerned.