Note 4 – Interest Revenue and Interest Expense | Financial Statements | Reserve Bank of Australia Annual Report – 2014

Reserve Bank of Australia Annual Report – 2014 Financial Statements Note 4 – Interest Revenue and Interest Expense

Analysis for the year ended 30 June 2014

Interest expense
	Average balance	Interest	Average annual interest rate
	$M	$M	%
Interest revenue
Foreign investments	52,404	153	0.3
Australian dollar securities	58,397	1,667	2.9
Overnight settlements	549	13	2.3
Cash collateral provided	50	1	2.6
Gold loans	49	–	0.4
Loans, advances and other	20	–	2.3
	111,469	1,834	1.6
Exchange Settlement balances	13,752	342	2.5
Deposits from governments	25,988	653	2.5
Deposits from overseas institutions	1,073	15	1.4
Banknote holdings of banks	3,175	72	2.3
Foreign repurchase agreements	2,548	(1)	–
Australian dollar repurchase agreements	124	3	2.5
Cash collateral received	101	2	2.5
Other deposits	19	–	1.0
	46,780	1,086	2.3
Analysis for the year ended 30 June 2013
Interest revenue total	79,226	1,642	2.1
Interest expense total	25,488	708	2.8

Interest revenue for 2013/14 includes $1,259 million calculated using the effective interest method for financial assets not at fair value through profit and loss ($857 million in 2012/13). Interest expense for 2013/14 includes $1,086 million calculated using the effective interest method for financial liabilities not at fair value through profit and loss ($708 million in 2012/13).