List of tables | Submission to the Financial System Inquiry March 2014 | Financial Sector | Submissions

Submission to the Financial System Inquiry List of tables

March 2014

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Chapters

Table 2.1: Australian Economic Indicators

Table 4.1: Table 4.1: APRA's Assessment of Systemic Importance

Table 4.2: The Major Banks

Table 4.3: Australian-owned Banks' Foreign Claims

Table 4.4: Systemic Importance of FMIs Operating in Australia

Table 5.1: Forms of Finance Used by Small Businesses^(a)

Table 8.1: Non-cash Retail Payments

Table 8.2: Selected Non-cash Payments By Country

Table 8.3: Selected Interchange Fees on a $100 Credit Card Transaction^(a)

Table 2.1: Australian Economic Indicators
Quarterly
		1980s	1990s	2000s
GDP Growth	Mean	0.8	0.8	0.8
	Standard deviation	1.0	0.8	0.5
Unemployment rate	Mean	7.6	8.8	5.5
	Standard deviation	1.4	1.4	0.8
Source: ABS

Table 4.1: APRA's Assessment of Systemic Importance
	Selected measure	Share of system total
Size^(a)	Resident assets	Four majors: 16–23 per cent 5th largest: 2 per cent
Interconnectedness^(a)	Loans and advances to financial corporations	Four majors: 15–25 per cent 5th largest: 4 per cent
	Deposits from financial corporations	Four majors: 16–22 per cent 5th largest: 6 per cent
	Securities outstanding	Four majors: 14–19 per cent 5th largest: 3 per cent
Substitutability^(a)	Loans and advances	Four majors: 16–25 per cent 5th largest: 2 per cent
	Loans and advances to households and non-financial corporates	Four majors: 16–25 per cent 5th largest: 2 per cent
Complexity^(b)	Risk-weighted assets for traded market risk	Four majors and Macquarie: 14–30 per cent 6th largest: 1 per cent
(a) Data are on a resident, domestic books basis and include Australian-owned banks, foreign-owned bank subsidiaries, and foreign-owned bank branches (b) Data are on a consolidated basis; foreign-owned bank branches do not hold capital in Australia so are not included Sources: APRA; banks' financial disclosures

Table 4.2: The Major Banks
Consolidated, as at end of 2013 financial year
	ANZ	CBA	NAB	WBC
Total assets ($b)	703	754	808	697
Ranking among international banks by total assets, at end 2012	42	39	37	40
Deposits to liabilities (per cent)	56	57	48	59
Loans to total assets (per cent)	67	74	51	77
Housing loans to total loans (per cent)	54	67	70	68
Trading assets and securities to total assets (per cent)	17	17	15	15
Cost-to-income ratio (per cent)	46	44	45	42
Return on equity (per cent)	15	18	12	15
Risk-weighted assets to total assets (per cent)	51	45	50	45
Tier 1 capital ratio (per cent of risk-weighted assets)	10.4	10.2	10.4	10.7
Sources: The Banker; banks' annual and Pillar 3 reports

Table 4.3: Australian-owned Banks' Foreign Claims
Consolidated global operations, immediate borrower basis, end September 2013
	Level	Share of consolidated assets	Share of foreign claims
	$ billion	Per cent	Per cent
New Zealand	298	9.0	39
United Kingdom	140	4.3	19
Asian region	142	4.3	19
United States	89	2.7	12
Other countries	86	2.6	11
Total	756	22.9	100
Sources: APRA; RBA

Table 4.4: Systemic Importance of FMIs Operating in Australia
Payment Systems
	Description of Activity	Size (Values Cleared/Settled, Daily)^(a)	Substitutes	Interconnectedness (Number of participants)^(b)
RITS	Settlement of high value payments (including for retail payment systems and other FMIs)	$167 billion	No substitute provider	85 participants (71 banks, 14 non-banks), of which 24 settle indirectly
CLS	Settlement of foreign exchange transactions	$253 billion (AUD settlements)	No substitute provider	63 settlement members (including four Australian banks). Other entities access indirectly
Central Counterparties
ASX Clear	Clearing of cash equities and equity-related derivatives	Cash equities: $4.2 billion traded value Equity options: $118 million traded value/$3.1 billion underlying.	No substitute provider	37 active direct participants (including Australian/foreign banks, brokers)
ASX Clear (Futures)	Clearing of ASX 24 exchange-traded derivatives and AUD OTC interest rate derivatives	$195 billion for five major listed financial contracts^(c)	No substitute provider for ASX-24 derivatives LCH.Clearnet Ltd for OTC derivatives	19 direct participants (including Australian/foreign banks). Large number of indirect participants for listed derivatives
LCH.Clearnet Ltd	Clearing of OTC interest rate derivatives	$15 billion notional value	ASX Clear (Futures)	88 direct participants internationally (including two Australian banks)
Securities Settlement Facilities
ASX Settlement	Settlement of cash equities	$8.5 billion^(d)	No substitute provider	80 direct participants (including Australian/ foreign banks, brokers)
Austraclear	Settlement of OTC trades in debt securities, AUD payments	$39 billion for securities trades $11 billion for payment-only transactions	No substitute provider	829 participants (including financial institutions and corporates); some access indirectly
(a) Average for year ended 31 December 2013; OTC derivatives data for April 2013. (b) As at 31 December 2013. (c) Data for exchange-traded derivatives only; OTC derivatives clearing service first used September 2013. (d) Includes settlement of off-market trades. Sources: ASX; Bloomberg; LCH.Clearnet Limited; RBA

Table 5.1: Forms of Finance Used by Small Businesses^(a)
2012
Finance product	Share of respondents
Credit card	73
Secured bank loan	41
Overdraft	40
Lease	36
Hire purchase	24
Family or friends	23
Chattel mortgage	20
Unsecured Bank loan	17
Vendor financing	8
Debtor financing	3
International trade financing	2
Inventory financing	1
Other	2
None	13
(a) The CPA Australia Asia-Pacific Small Business Survey is an annual survey conducted in six markets of businesses with fewer than 20 employees; for Australia, around 500 businesses are surveyed each year Source: CPA Australia (2012)

Table 8.1: Non-cash Retail Payments
	2013		1997–2013
	Per cent of total		Average annual growth, per cent
	Number	Value	Number	Value
Direct entry	30.2	87.4	9.1	15.1
Direct debits	9.6	37.8	12.4	17.0
Direct credits	20.7	49.6	8.0	13.9
Debit cards	40.5	1.3	11.7	11.9
Credit/charge cards	22.9	1.7	10.8	12.4
BPAY	4.1	1.8	33.7^(a)	45.8^(a)
Cheques	2.3	7.8	−8.3	−8.8
Total	100.0	100.0	8.3	5.3
(a) Average annual growth since 1998. Sources: APCA; BPAY; RBA

Table 8.2: Selected Non-cash Payments By Country
Number of payments per capita
	Australia		Canada		France		United Kingdom		United States
	1997	2012	1997	2012	1997	2012	1997	2012	1997	2012
Card Payments	52	210	65	216	39	130	45^(a)	167^(a)	63	248
– Debit cards	31	132	33	126	na	na	25	129	15	165
– Credit cards^(b)	20	78	32	90	na	na	19	32	48	84
Cheques	42	10	58	22	82	43	52	13	174	58
Credit Transfers	28	72^(c)	13	28	31	47	28	58	9	28
Debit Transfers	7	32	11	20	24	54	27	54	5	42
Total	128	324	147	286	175	275	152	293	251	376
(a) Includes charge debit cards (b) Includes charge cards (c) Includes BPAY Sources: ABS; BIS; RBA

Table 8.3: Selected Interchange Fees on a $100 Credit Card Transaction^(a)
Average for MasterCard and Visa, January 2014
	Australia^(b)	United States
Rate for most-preferred merchants (applies to all their transactions)^(c)	0.21	1.20
Typical rate for non-preferred merchants (applies to transactions on non-premium cards)	0.30	1.76
Rate for non-preferred merchants on transactions using highest-level of premium/rewards card^(d)	2.00	3.20
(a) Local currency (b) Excludes GST (c) Lowest rate applicable to ‘strategic merchants’ (Australia) or supermarkets (US) (d) ‘Standard’ interchange rates in the US Sources: MasterCard, Visa