Financial Stability Review – March 2006 List of tables
- Table 1: World GDP Growth
- Table 2: Selected Emerging Market Debt Issues in Local Currencies
- Table 3: House Prices
- Table 4: Personal Credit
- Table 5: Owner-occupier Housing Debt
- Table 6: Annual Profit Results
- Table 7: Banks' Australian Commercial Property Exposures
- Table 8: Australian-owned Banks' Foreign Exposures
- Table 9: Traded Market Risk
- Table 10: Australian Banks' Offshore Debt Securities
- Table 11: Long-term Ratings of Australian Banks
- Table 12: Long-term Ratings of Selected General Insurers
- Table 13: Superannuation Assets
- Table 14: Community Expectations of Government Bail-outs
- Table 15: Supervisor of Banks, Building Societies and Credit Unions
Boxes
- Table A1: Commercial Property Prices
- Table C1: Foreign Currency Hedging by Banks
- Table C2: Foreign Currency Derivatives Used by Banks
Articles
The Structure of the Australian Financial System
The Performance of Australian Residential Mortgage-backed Securities
2004 | 2005 Estimate |
2006 Consensus forecasts (March 2006) |
|
---|---|---|---|
United States | 4.2 | 3.5 | 3.3 |
Euro area | 1.8 | 1.4 | 2.1 |
Japan | 2.3 | 2.8 | 2.9 |
China | 10.1 | 9.9 | 9.1 |
Other east Asia(b) | 5.9 | 4.8 | 4.9 |
World | 5.1 | 4.6 | 4.6 |
Australia's trading partners(c) | 4.9 | 4.5 | 4.4 |
(a) Aggregates weighted by GDP at PPP exchange
rates unless otherwise specified Sources: CEIC; Consensus Economics; IMF; RBA; Thomson Financial |
Issue rating | Maturity date |
Coupon rate |
Amount issued(a) |
Market | |
---|---|---|---|---|---|
Moody's/S&P | Per cent | US$m | |||
Brazil | Ba3/BB | Jan 2016 | 12.5 | 1,480 | Global |
Colombia | Ba2/BB | Oct 2015 | 12 | 570 | Global |
Czech Republic | A+(b) | Sep 2020 | 3.75 | 930 | Domestic |
Malaysia | A3/– | Jul 2025 | 4.84 | 790 | Domestic |
Mexico | – | Nov 2035 | 4.5 | 60 | Domestic |
Russia | Baa2/BBB+ | Feb 2036 | 6.95 | 280 | Domestic |
South Africa | – | Jan 2020 | 7.25 | 980 | Domestic |
South Korea | A3/– | Mar 2026 | 5.75 | 1,090 | Domestic |
(a) Local currency amount converted using the exchange rate on the issue
date Source: Bloomberg |
Five years to December 2003 | Two years to December 2005 | |||||||
---|---|---|---|---|---|---|---|---|
ABS | APM | REIA | Residex | ABS | APM | REIA | Residex | |
Sydney | 14.2 | 15.0 | 12.8 | 15.1 | −4.3 | −4.3 | −1.9 | −2.8 |
Melbourne | 14.6 | 14.9 | 13.5 | 14.3 | 1.7 | 1.0 | −1.5 | 4.5 |
Brisbane | 15.5 | 17.4 | 16.6 | 17.1 | 3.4 | 3.3 | 3.6 | 4.6 |
Adelaide | 14.2 | 16.0 | 14.3 | – | 5.1 | 4.9 | 6.5 | – |
Perth | 10.4 | 12.8 | 10.1 | 14.1 | 17.7 | 16.2 | 14.7 | 17.6 |
Canberra | 16.3 | 19.3 | 15.9 | 19.0 | −0.3 | 0.7 | −0.3 | 1.2 |
Australia | 13.8 | 15.2 | 13.2 | 15.2(a) | 1.2 | 0.8 | 0.9 | 4.0(a) |
(a) Excludes Adelaide, Hobart and Darwin Sources:ABS; APM; RBA; REIA; Residex |
Component | Share of personal credit | Year-ended growth | |
---|---|---|---|
Jan 2006 | Jan 2004 | Jan 2006 | |
Fixed | 52.7 | 11.9 | 9.7 |
Credit card | 25.0 | 17.0 | 12.1 |
Non-credit card revolving | 22.3 | 26.8 | 8.3 |
of which: secured by housing | 15.2 | 32.0 | 6.9 |
Total | 100.0 | 15.3 | 10.0 |
Memo: Margin loans(a) | 16.5 | 15.3 | 31.0 |
(a) Margin loan data are for December 2003 and December 2005, and include some margin loans to business. Margin loans feature in both revolving and fixed credit owing to differences in reporting across lenders. Source: RBA |
Income quintile |
Mortgage repaymentsof owner-occupiers(a) Per cent of average after-tax earnings of households in quintile |
Share of total owner-occupier mortgage repayments(a) |
Share of all household net worth |
---|---|---|---|
Lowest | 44.3(b) | 2.4 | 12.5 |
Second | 28.3 | 7.0 | 15.4 |
Third | 24.2 | 17.8 | 16.2 |
Fourth | 20.5 | 29.5 | 20.2 |
Highest | 16.8 | 43.3 | 35.7 |
(a) Includes interest payments and principal repayments on primary mortgage. Source: ABS |
2004 $b |
2005 $b |
Growth Per cent |
|
---|---|---|---|
Income | |||
Net interest income | 24.2 | 25.8 | 6.5 |
Net income from wealth management | 5.4 | 6.6 | 23.3 |
Other non-interest income (b) | 13.1 | 14.8 | 13.1 |
Expenses | |||
Operating expenses(c) | 22.4 | 23.7 | 5.5 |
Bad and doubtful debts | 2.3 | 1.9 | −15.6 |
Goodwill amortisation | 0.8 | 0.9 | 4.3 |
Profit(d) | |||
Net profit before tax and revaluations | 17.1 | 20.8 | 21.2 |
Net profit before tax | 17.2 | 21.9 | 27.2 |
Net profit after tax | 12.3 | 15.6 | 26.7 |
(a) Year to September for ANZ Banking Group, National Australia Bank, St
George Bank and Westpac Banking Corporation; year to June for Commonwealth
Bank of Australia Sources: Banks' annual reports |
Growth Year to September 2005 |
Share of total commercial lending |
Impaired assets Share of commercial property exposures |
|
---|---|---|---|
Office | 20 | 10 | 0.1 |
Retail | 6 | 7 | 0.1 |
Industrial | 26 | 4 | 0.0 |
Residential | 17 | 11 | 0.4 |
Tourism and leisure | 23 | 2 | 0.1 |
Other | 27 | 4 | 0.2 |
Total | 18 | 37 | 0.2 |
Source: APRA |
Total | of which: | |||
---|---|---|---|---|
Level $b |
Share Per cent |
Cross-border $b |
Local $b |
|
New Zealand | 166.0 | 45.3 | 4.7 | 161.3 |
United Kingdom | 84.7 | 23.1 | 17.9 | 66.8 |
United States | 38.3 | 10.4 | 21.2 | 17.0 |
Other developed countries | 50.5 | 13.8 | 47.3 | 3.2 |
Developing countries | 15.8 | 4.3 | 10.0 | 5.8 |
Offshore centres(a) | 10.9 | 3.0 | 6.9 | 4.0 |
Other | 0.2 | 0.0 | 0.0 | 0.1 |
Total | 366.3 | 100.0 | 108.1 | 258.2 |
Memo: Per cent of total assets | 27.0 | 8.0 | 19.0 | |
(a) Includes Hong Kong and Singapore Source: APRA |
2004 | 2005 | |
---|---|---|
Interest rate | 0.02 | 0.02 |
Foreign exchange | 0.01 | 0.01 |
Other(b) | 0.02 | 0.01 |
Diversification benefit | −0.01 | −0.01 |
Total | 0.04 | 0.04 |
(a)
Value-at-risk is calculated
using a 99 per cent
confidence interval and
one-day holding
period. Sources: Banks' annual reports |
Market of issue | Currency | Total | ||||
---|---|---|---|---|---|---|
AUD | USD | EUR | GBP | Other | ||
United Kingdom | 6.0 | 21.6 | 21.1 | 12.5 | 10.5 | 71.7 |
United States | 0.1 | 10.6 | 0.5 | 0.0 | 0.0 | 11.4 |
Hong Kong | 0.4 | 4.7 | 0.1 | 1.4 | 2.0 | 8.5 |
Japan | 0.5 | 0.2 | 0.0 | 0.0 | 1.5 | 2.2 |
Other | 1.3 | 2.1 | 0.5 | 0.5 | 1.8 | 6.2 |
Total | 8.3 | 39.3 | 22.3 | 14.3 | 15.8 | 100.0 |
Source: APRA |
Standard & Poor's | Moody's | Fitch | |
---|---|---|---|
Adelaide Bank | BBB+ | Baa2 | – |
AMP Bank | A− | A3 | – |
ANZ Banking Group | AA− | Aa3 | AA− |
Arab Bank Australia | – | Baa2 | A− |
Bank of Queensland | BBB+ | Baa2 | BBB |
BankWest | A+ | A1 | – |
Bendigo Bank | BBB+ | – | BBB+ |
Commonwealth Bank of Australia | AA− | Aa3 | AA |
HSBC Bank Australia | AA− | A1 | – |
ING Bank (Australia) | AA | Aa2 | – |
Macquarie Bank | A | A2 | A+ |
National Australia Bank | AA− | Aa3 | AA |
St George Bank | A+ | A2 | A+ |
Suncorp-Metway | A | A2 | A |
Westpac Banking Corporation | AA− | Aa3 | AA− |
Sources: Fitch; Moody's; Standard & Poor's |
Allianz Australia Insurance | A |
---|---|
Insurance Australia | AA |
QBE Insurance Australia | A+ |
Suncorp-Metway Insurance | A |
Vero Insurance (Promina) | A+ |
Source: Standard &Poor's |
Fund type | Year-ended percentage change |
Share of total assets |
---|---|---|
Industry | 34 | 16 |
Self-managed | 28 | 23 |
Retail | 23 | 33 |
Public sector | 21 | 17 |
Corporate | 12 | 9 |
Other(a) | −29 | 2 |
Total | 22 | 100 |
(a) Balance of life insurers' statutory funds Source: APRA |
Response | Type of Claim | |
---|---|---|
Main deposit account |
Payment from a general insurer(a) |
|
Guarantee or government likely to step in | 60 | 50 |
of which: | ||
– guarantee | 22 | 21 |
– government likely to step in(b) | 37 | 29 |
No guarantee and government unlikely to step in | 10 | 31 |
Unsure about guarantee, but government unlikely to step in | 21 | 12 |
Unsure whether government would step in | 9 | 6 |
(a) Numbers
do not add to 100 per cent
due to rounding. Source:RBA |
APRA | 14 |
---|---|
Australian Bankers' Association | 10 |
Australian government | 8 |
Australian Treasury | 5 |
Reserve Bank | 28 |
Other/can't say | 36 |
(a) Numbers do not add to 100 per cent due to rounding. Source: RBA |
All commercial property | Office property | |||
---|---|---|---|---|
Year to December 2005 |
Three years to December 2004(a) |
Year to December 2005 |
Three years to December 2004(a) |
|
Australia | – | – | 11.7 | 1.9 |
Canada | 10.1 | 1.4 | 9.3 | −0.9 |
Ireland | 18.1 | 3.0 | 16.7 | −2 |
New Zealand | 8.8 | 2.3 | 8.2 | 1.4 |
United Kingdom | 12.8 | 5.8 | 13.4 | −0.2 |
United States | 11.3 | 5.7 | 11.8 | 3.6 |
Germany(b) | – | −2.1 | 0.0 | −15.3 |
Japan(c) | – | – | −7.0 | −9.9 |
Singapore | – | – | 4.5 | −9.6 |
(a) Average
annual percentage
change. Sources: Investment Property Databank; Japan Real Estate Institute; Jones Lang LaSalle; Property Council of New Zealand; Singapore Urban Redevelopment Authority; US Federal Reserve |
A$b | |
---|---|
Net FX position on debt | −186 |
Derivative positions to hedge debt | 168 |
Net FX position on debt (after derivatives) | −18 |
Foreign equity assets | 33 |
Derivative positions to hedge equity | −10 |
Net FX position on equity (after derivatives) | 23 |
Foreign currency position (after derivatives) | 5 |
(a) Negative values indicate a net foreign currency liability position. Source: ABS |
Long foreign currency/short A$ positions |
Short foreign currency/long A$ positions |
Net position | |
---|---|---|---|
Forward foreign exchange | 483 | −420 | 64 |
Cross-currency interest rate swaps | 266 | −179 | 86 |
Futures | 87 | −86 | 1 |
Currency options | 51 | −48 | 3 |
Other derivatives | 1 | 0 | 0 |
(a) Negative values indicate a short foreign currency position. Amounts may not add to net position due to rounding. Source: ABS |
1990 | 2005 | Per cent of total 2005 | |
---|---|---|---|
$b | $b | ||
Superannuation funds(b) | 128 | 677 | 71 |
Public unit trusts | 24 | 203 | 21 |
Cash management trusts | 5 | 38 | 4 |
Non‑super life insurance | 32 | 23 | 2 |
Common funds | 7 | 10 | 1 |
Friendly societies | 8 | 5 | 1 |
Total | 204 | 955 | 100 |
(a) For each sector, figures exclude assets cross‑invested in other
managed funds sectors. Sources: ABS; APRA; RBA |
Total | Number that have been: | ||
---|---|---|---|
Upgraded | Downgraded | ||
Prime RMBS | |||
Senior tranches | 356 | 0 | 0 |
Subordinated tranches | 217 | 74 | 9 |
Sub-prime RMBS | |||
Senior tranches | 40 | 0 | 0 |
Subordinated tranches | 63 | 3 | 0 |
All RMBS | |||
Senior tranches | 396 | 0 | 0 |
Subordinated tranches | 280 | 77 | 9 |
(a) Senior tranches refer to all tranches that were rated AAA at issuance. All other rated tranches have been classified as subordinated tranches. Sources: RBA; Standard & Poor's |