Reserve Bank of Australia Annual Report – 2003 Financial Statements Note 11 – Contingent Liabilities and Other Items Not Included in Statement of Financial Position

Contingencies

The RBA has a contingent liability, amounting to $72.6 million at 30 June 2003 ($79.0 million at 30 June 2002), in respect of the uncalled portion of its shares held in the Bank for International Settlements.

In the course of providing services to its customers, the RBA provides performance guarantees to third parties in relation to customer activities. Such exposure is not material and has not given rise to losses in the past.

Other items

The RBA has commitments of $8.2 million at 30 June 2003 ($11.8 million at 30 June 2002) payable within one year; and $0.5 million commitments payable beyond one year.

The RBA carries its own insurance risks except where external insurance cover is considered to be more cost-effective or required by legislation.