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RBA Glossary definition for repurchase agreement

repurchase agreement – The vehicle whereby most Reserve Bank of Australia (RBA) domestic market operations are conducted. Repurchase agreements (usually called 'repos') involve the sale or purchase of securities with an undertaking to reverse the transaction at an agreed date in the future and at an agreed price. Repos provide flexibility in that they allow the RBA to inject liquidity on one day and withdraw it on another with a single transaction.

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5.4 Focus Topic: Interest Rate Risk

6 Oct 2023 FSR – October 2023
5.4 Focus Topic: Interest Rate Risk | Financial Stability Review – October 2023
https://www.rba.gov.au/publications/fsr/2023/oct/focus-topic-interest-rate-risk.html

The Australian High-Value Payments System

10 Mar 2004 FSR – March 2004
In the next 75 minutes, banks estimate their liquidity needs and, if required, undertake intra-day repurchase agreements with the Reserve Bank. ... By 5.15 pm, those banks that are not involved in global cross-currency settlements finalise their
https://www.rba.gov.au/publications/fsr/2004/mar/aus-high-val-pay-sys.html

Box D: The New Payments Platform and Fast Settlement Service

10 Apr 2018 FSR – April 2018
institutions to obtain funds from the Reserve Bank on pre-specified terms via intraday or open-dated repurchase agreements).
https://www.rba.gov.au/publications/fsr/2018/apr/box-d.html

Box A: The Basel III Liquidity Reforms in Australia

10 Mar 2015 FSR – March 2015
Through this facility, the Reserve Bank commits to provide pre-specified amounts of Australian dollar liquidity to banks subject to the full LCR, against a range of assets under repurchase agreement.
https://www.rba.gov.au/publications/fsr/2015/mar/box-a.html

Recommendation regarding Reserve Bank repos | Report to the Inquiry into Competition in the Banking and Non-Banking Sectors – May 2009 |…

7 May 2009 Submissions
In the report, the Committee commented on the use of Reserve Bank repurchase agreements (repos) as a means of providing longer-term funding for the mortgage market. ... The Committee further noted:. The RBA repurchase agreements are an effective tool for
https://www.rba.gov.au/publications/submissions/financial-sector/inquiry-report-2009-05/recommendation-regarding-reserve-bank-repos.html

Superannuation | Supplementary Submission to the Financial System Inquiry – August 2014 | Financial Sector | Submissions

1 Aug 2014 Submissions
First, superannuation funds that meet certain requirements can already participate in repurchase agreement (repo) auctions conducted by the Reserve Bank in its open market operations, and can access liquidity through this
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-08/superannuation.html

The Regulatory Response to the Global Financial Crisis | Submission to the Financial System Inquiry – March 2014 | Financial Sector |…

1 Mar 2014 Submissions
As G20 president in 2014, the Australian approach, supported by the Bank, is to focus the G20's efforts on reaching agreement and progressing implementation in the four core reform areas, ... policies to dampen risks and procyclical incentives associated
https://www.rba.gov.au/publications/submissions/financial-sector/financial-system-inquiry-2014-03/regulatory-response-to-the-global-financial-crisis.html

Box D: A Closer Look at the Shadow Banking System in Australia

10 Mar 2012 FSR – March 2012
Their asset mix tends to be skewed towards commercial loans and trading securities, while they obtain a relatively large share of their funding from short-term wholesale markets – including repurchase agreements
https://www.rba.gov.au/publications/fsr/2012/mar/box-d.html

The Australian Financial System

10 Mar 2009 FSR – March 2009
In addition to higher holdings of traditionally liquid assets, the banks have ‘self securitised’ around $135 billion of residential mortgages, with these eligible for repurchase agreements with the RBA. ... In addition, the RBA has enhanced the
https://www.rba.gov.au/publications/fsr/2009/mar/aus-fin-sys.html

Appendix 2: Leverage and Financial Markets | Hedge Funds, Financial Stability and Market Integrity – March 1999 | Financial Sector |…

1 Mar 1999 Submissions
These positions are usually created and funded through a repurchase agreement which is a form of over-collateralised loan.
https://www.rba.gov.au/publications/submissions/financial-sector/hedge-funds-financial-stability-and-market-integrity/appendix-2.html