Reserve Bank of Australia Annual Report – 2009 Financial Statements Note 4
Note 4 INTEREST REVENUE AND INTEREST EXPENSE
Analysis
for the year ended 30 June 2009
| Average balance |
Interest | Average annual interest rate |
|||
|---|---|---|---|---|---|
| $M | $M | % | |||
| Interest revenue | |||||
| Overseas investments | 62,220 | 1,266 | 2.0 | ||
| Australian dollar securities | 55,096 | 3,093 | 5.6 | ||
| Overnight settlements | 827 | 37 | 4.5 | ||
| Gold loans | 615 | 4 | 0.6 | ||
| Loans, advances and other | 27 | 1 | 4.3 | ||
| 118,785 | 4,401 | 3.7 | |||
| Interest expense | |||||
| Banks' Exchange Settlement balances | 3,818 | 179 | 4.7 | ||
| Term deposits of domestic financial institutions | 3,759 | 172 | 4.6 | ||
| Deposits from governments | 21,680 | 1,059 | 4.9 | ||
| Deposits from overseas institutions | 16,158 | 327 | 2.0 | ||
| Currency note holdings of banks | 3,836 | 167 | 4.3 | ||
| Overseas repurchase agreements | 5,981 | 51 | 0.8 | ||
| Domestic repurchase agreements | 1,598 | 78 | 4.9 | ||
| Other deposits | 160 | 7 | 4.4 | ||
| 56,990 | 2,040 | 3.6 | |||
| Analysis for the year ended 30 June 2008 | |||||
| Interest revenue total | 99,213 | 5,204 | 5.2 | ||
| Interest expense total | 50,904 | 2,940 | 5.8 |
During 2008/09 the Bank provided domestic financial institutions with a term deposit facility to assist liquidity management. As there were no term deposit balances at 30 June 2009, this facility does not appear in Note 9.
Interest revenue for 2008/09 includes $3,353 million calculated using the effective interest method for financial assets not at fair value through profit and loss ($4,190 million in 2007/08). Interest expense for 2008/09 includes $2,040 million calculated using the effective interest method for financial liabilities not at fair value through profit and loss ($2,940 million in 2007/08).