Australia Yearbook - 2001

Chapter 26—Financial system 885
companies, similar business undertaken by
friendly societies and long-service-leave boards.
Pension funds cover separately constituted
superannuation funds.
Other insurance corporations cover health,
export and general insurance companies.
Central borrowing authorities are corporations
set up by State and Territory Governments to
provide liability and asset management services
for those governments.
Financial intermediaries n.e.c. cover common
funds, mortgage, fixed interest and equity unit
trusts, issuers of asset-backed securities,
economic development corporations and
cooperative housing societies.
Table 26.2 shows the relative size of these groups
of financial enterprises in terms of their financial
assets. This table has been compiled on a
consolidated basis, i.e. financial claims between
institutions in the same grouping have been
eliminated. The total is also consolidated,
i.e. financial claims between the groupings have
been eliminated. For this reason, and because
there are a number of less significant adjustments
made for national accounting purposes, the
statistics in the summary table will differ from
those presented later in this chapter and
published elsewhere.
Banks
Between 1940 and 1959, central banking business
was the responsibility of the Commonwealth
Bank. The Reserve Bank Act 1959 established the
Reserve Bank of Australia as the central bank, and
from 1959 to 1998 the Reserve Bank was
responsible for the supervision of commercial
banks. From 1 July 1998, the Australian Prudential
Regulation Authority (APRA) assumed
responsibility for bank supervision while the
Reserve Bank retains responsibility for monetary
policy and the maintenance of financial stability,
including stability of the payments system.
Banks are the largest deposit-taking and financial
institutions in Australia. At the end of June 2000
there were 55 banks operating in Australia. All are
authorised to operate by the Banking Act 1959.
Four major banks: the Australia and New Zealand
Banking Group, National Australia Bank, Westpac
Banking Corporation and the Commonwealth
Bank of Australia, account for over half the total
assets of all banks. These four banks provide
widespread banking services and an extensive
retail branch network throughout Australia. The
remaining banks provide similar banking services
through limited branch networks often located in
particular regions. As at 30 June 2000, banks
operated: 5,003 branches of which 2,838 were in
metropolitan areas and 2,165 elsewhere; and
5,043 agencies of which 2,091 were in
metropolitan areas and 2,952 elsewhere. Banking
services were also provided at 2,724 giroPost
locations (at 30 June 1999) and 10,818 Automatic
Teller Machines (ATM) throughout Australia (at
30 June 2000).
The liabilities and financial assets of the Reserve
Bank are set out in table 26.3. The liabilities and
financial assets of the banks operating in Australia
are shown in table 26.4.
26.2 FINANCIAL INSTITUTIONS, Financial Assets
Depository corporations
Reserve
Bank
Banks
Other
Life insurance
corporations
Pension
funds
Other
insurance
corporations
Central
borrowing
authorities
Financial
intermediaries
n.e.c.
Consolidated
financial
sector total
At 30
June
$b $b $b
$b $b
$b $b
$b
$b
1996 35.6 474.1 145.0 123.8 208.5 45.9 100.2 98.1 919.6
1997 49.1 528.2 154.9 140.1 256.6 51.7 92.0 122.4 1 029.0
1998 45.1 581.5 170.6 157.5 297.3 60.7 95.5 165.3 1 144.2
1999 44.6 647.6 172.6 172.2 344.6 62.2 96.0 158.2 1 223.2
2000 51.1 731.3 180.3 184.1 405.4 68.1 89.7 199.0 1 389.4
Source: Australian National Accounts: Financial Accounts (5232.0).