Reserve Bank of Australia Annual Report – 2001 Financial Statements Note 10 – Contingent Liabilities and Other Items Not Included in Statement of Financial Position


The RBA has a contingent liability, amounting to $74.7 million at 30 June 2001 ($67.4 million at 30 June 2000), in respect of the uncalled portion of its shares held in the Bank for International Settlements.

A contingent liability of $4.6 million exists for remediation work to be carried out on Bank premises.

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 $2.3 million commitments at 30 June 2001 ($1.2 million at 30 June 2000) payable within one year; and no commitments payable beyond one year ($0.6 million at 30 June 2000).

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