Reserve Bank of Australia Annual Report – 1999 Financial Statements Note 11 – Contingent Liabilities and Other Items Not Included in the Balance Sheet


The Bank has a contingent liability, amounting to $55.4 million at 30 June 1999 ($67.6 million at 30 June 1998), in respect of the uncalled portion of its shares held in the Bank for International Settlements.

In the course of providing banking services to its customers, the Bank 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 Reserve Bank had been a respondent on appeal from a judgement given in the Bank's favour by the Federal Court; in the appeal the Full Court of the Federal Court found in favour of the applicants; the Bank has lodged an application with the High Court of Australia seeking leave to appeal from the decision of the Full Court of the Federal Court. The Bank is a defendant in one common law matter. The Bank is an appellant in a case regarding a payroll tax assessment. No case is likely to have a materially adverse effect on the activities, financial condition or operating results of the Bank.

The Bank has commitments of $2.9 million at 30 June 1999 payable within one year.

The Bank carries its own insurance risks except where administrative costs are estimated to be excessive.