5232.0 - Australian National Accounts: Financial Accounts, Jun 2001
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 28/09/2001
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NON-FINANCIAL CORPORATIONS During the September quarter 2001 total liabilities of national public non-financial corporations decreased by $7.3 billion to $99.3 billion, mainly through valuation decrease in equities on issue of $6.3 billion. Net issue of debt securities was $0.5 billion and net redemptions of loans was $0.9 billion and accounts payable of $0.4 billion. Liabilities of state and local public non-financial corporations decreased by $0.9 billion to $142.2 billion. Revaluation of unlisted shares on issue of $1.2 billion and redemption of Bills to the value of $0.2 billion contributed to this decrease. This was offset by an increase in loans of $0.4 billion and accounts payable of $0.1 billion. Private non-financial corporations debt to equity ratio From December quarter 1999 to September quarter 2001 debt outstanding has risen by $85.1 billion, whilst the value of equity on issue has decreased by $3.3 billion. During the September quarter debt increased by $9.2 billion whilst equities on issue decreased by $65.4 billion, largely due to valuation effects as a consequence of the downturn in global equity markets. This has led to a significant increase in the debt to equity ratio in original terms from 0.8 to 0.91. The adjusted ratio effectively reflects the removal of price change form the original series. The September quarter adjusted ratio shows little change compared to the previous quarter due to the removal of significant equity price falls over the period. FINANCIAL CORPORATIONS Summary During the September quarter 2001, Financial corporations issued $14.6 billion liabilities on a consolidated basis. The Central bank ($1.6 billion), Banks ($14.2 billion), Other depository corporations ($7.6 billion), Life insurance corporations ($1.8 billion), Other insurance corporations ($2.3 billion), Pension funds ($1.0 billion), State central borrowing authorities ($1.2 billion) were all net issuers of liabilities. The only group of financial corporations that withdrew, repaid or redeemed liabilities was Financial intermediaries n.e.c. ($4.5 billion). Banks During the quarter, banks increased deposit liabilities ($5.6 billion), derivatives issuance ($5.6 billion), one name paper issuance offshore ($3.3 billion) and bonds issuance ($4.6 billion). There was also a net issuance of equity by listed banks ($1.8 billion). There were significant redemptions of bills of exchange ($4.7 billion) and one name paper issued onshore ($2.5 billion) during the quarter. Banks acquired financial assets of $20.7 billion during the quarter. There were net loans and placements of $9.9 billion, of which $11.6 billion was borrowed by households and was offset by repayments of $1.7 billion by other sectors. Banks also increased their currency and deposits assets ($6.7 billion) and holdings of derivatives ($5.9 billion) and bonds ($2.0 billion). There were also net reductions in equity ($3.9 billion) and acceptance of bills of exchange ($1.4 billion). Other depository corporations Total liabilities of other depository corporations increased by $7.6 billion during the September quarter 2001 mainly due to increases in currency and deposit ($6.0 billion) and derivatives issuance ($2.8 billion). Their total financial assets increased by $10.3 billion through holdings of one name paper ($2.3 billion), bonds ($3.7 billion), derivatives ($2.7 billion), and their loans portfolio ($3.8 billion). Life insurance corporations At the end of the September quarter 2001 the non-pension fund net equity in reserves of life insurance corporations was $41.7 billion, following a net reduction of $3.6 billion during the quarter. Pension funds increased their holdings of reserves in life insurance corporations by $4.7 billion to $115.0 billion. During the September quarter 2001, transactions in life insurance office liabilities were $1.8 billion, financial asset acquisition was $2.8 billion for an overall net increase in financial position of $1.0 billion. Pension funds Net equity in reserves of pension funds was $457.6 billion at the end of the September quarter 2001, following a net increase of $2.9 billion during the quarter. Transactions in financial assets were $3.1 billion, due mainly to purchases of life insurance products ($4.7 billion) and net purchases of equities ($4.4 billion). These were offset by decreases in loans and placements ($2.4 billion), and one name paper ($2.2 billion). Other insurance corporations At 30 September 2001 financial assets stood at $74.6 billion following net purchases of bonds ($1.7 billion) and increases in accounts receivable ($1.1 billion). Transactions in liabilities totalled $2.3 billion following prepayments of premiums of $2.1 billion. Central borrowing authorities Total liabilities of central borrowing authorities increased by $1.2 billion to $93.0 billion at the end of the September quarter. There were net issuance of one name paper ($3.8 billion), derivatives ($0.7 billion) and bonds issued offshore ($0.1 billion). There was also significant redemption of bonds issued in Australia ($2.6 billion). Financial intermediaries n.e.c. Financial intermediaries n.e.c. decreased funding by $4.5 billion in the September quarter 2001. The major contributors were unlisted shares and other equity ($2.4 billion), loans and placements ($2.2 billion), redemptions of one name paper ($1.5 billion) and other accounts receivable ($1.1 billion). Transactions in financial assets were $1.0 billion due to an increase in loans and placements ($2.8 billion) and currency and deposits ($1.4 billion), which were offset somewhat by net redemptions of bills of exchange ($2.1 billion) and one name paper ($1.8 billion). Net flow of currency and deposits to banks The net transaction in currency and deposit liability with banks during the September quarter 2001 was $5.6 billion. The largest contributions were made by households, $7.9 billion, other depository corporations, $1.7 billion, and financial intermediaries n.e.c., $1.7 billion. The rest of the world reduced its deposits with banks by $6.8 billion. Asset portfolio of life insurance corporations and pension funds at end of quarter At the end of September quarter 2001 life insurance corporations held $101.2 billion in shares and other equity (55% of their financial assets), of which $75.8 billion was in resident companies and $25.4 billion was in non-resident companies; $40.6 billion in bonds (22% of their financial assets), of which $34.3 billion was in Australian bonds and $6.3 billion in non-resident bonds; and $14.2 billion in short term securities (8% of their financial assets). Financial claims between households, life insurance companies, pension funds and investment managers at end of quarter At the end of September quarter 2001 pension funds held $213.5 billion in shares and other equity (48% of their financial assets), of which $152.2 billion was in resident companies and $61.3 billion was in non-resident companies. They held $115.0 billion of net equity of pension funds in life office reserves (26% of their financial assets); and $37.2 billion in bonds (8% of their financial assets), of which $27.9 billion were Australian bonds and $9.3 billion were non-resident bonds. At the end of the September quarter 2001 households had policy claims against the reserves of life insurance corporations of $41.7 billion, and pension funds of $457.6 billion. Pension funds had claims against the reserves of life Insurance corporations of $115.0 billion. Life insurance corporations invested $140.2 billion (76%) of their financial assets through investment managers and pension funds invested $185.7 billion (42%) through investment managers. Asset portfolio of other insurance corporations at end of quarter The graph below shows that at the end of September quarter 2001 other insurance corporations held $24.3 billion in bonds (33% of total financial assets), of which $20.6 billion were Australian bonds and $3.7 billion were non-resident bonds; and $22.5 billion in shares and other equity (30% of total financial assets), of which $19.9 billion was in resident corporations and $2.6 billion in non-resident corporations. Central borrowing authorities net issue of debt securities Central borrowing authorities had a net issuance in one name paper of $3.8 billion and a net redemption in bonds of $2.5 billion in the September 2001 quarter. Financial intermediaries n.e.c. net issue of debt securities During the September quarter 2001 financial intermediaries n.e.c. made a net redemption in short term securities of $2.1 billion and a net issuance in bonds of $2.8 billion. GENERAL GOVERNMENT Summary During the September quarter 2001, general government transactions resulted in a net change in financial position of -$2.5 billion, see Table 33H. National general government increased its liabilities by $0.3 billion in the September quarter 2001 and also increased its financial assets by $0.1 billion to record a net change in financial position of -$0.2 billion, see Table 29 and the graph below. Assets increased mostly due to a $0.3 billion increase in derivatives and other accounts receivable of $0.1 billion, offset by reductions in loans and placements, $0.2 billion. The increase in liabilities was mainly due to the net issue of bonds issued domestically ($0.6 billion). At the end of September 2001, national general government had total liabilities of $174.9 billion and total financial assets of $101.6 billion. State and local general government financial assets decreased by $2.2 billion in the September quarter 2001. Total liabilities increased by $0.1 billion, resulting in a net change in financial position of -$2.3 billion. At the end of the quarter, State and local general government had total liabilities of $92.0 billion and total financial assets of $121.4 billion. Change in financial position National government net issue of debt securities The accompanying graph illustrates the national general government's bond issuance, with a net $0.6 billion movement in treasury bonds during the quarter. Short term debt security liabilities have had a net decrease of $0.1 billion over the quarter. HOUSEHOLDS Summary Households deposited $7.9 billion with banks, and $0.7 billion with other depository corporations during the September quarter 2001. Household currency and deposits holdings were $282.6 billion at the end of the quarter. Households disposed of a net $2.5 billion in equities during the September quarter 2001. Sales of $3.0 billion in private non-financial corporations shares and sales of $1.0 billion in financial intermediaries n.e.c. shares were offset by purchases of $1.5 billion shares in banks. The $0.4 billion purchase of foreign shares by households was a result of the takeover of Cable and Wireless Optus Ltd by Singtel. Whilst transactions of this nature are identifiable, ABS does not have reliable data sources for measuring personal transactions in foreign shares. At the close of the quarter households' stock of financial assets was $1,179.3 billion. Net equity in reserves of life insurance corporations and pension funds accounted for 42% of this total, currency and deposits 24% per cent , equities issued by domestic sectors 17 % and unfunded superannuation claims 10%. Household net borrowing During the September quarter 2001 households borrowed a net $15.0 billion, of which $11.6 billion was in the form of bank loans. This borrowing raised household bank loan liabilities to $376.4 billion for the September quarter 2001. Net purchases of bonds The accompanying graph shows that non-residents purchased $7.0 billion of Australian bonds during the September quarter 2001, a decrease of $8.5 billion compared with the June quarter 2001. Document Selection These documents will be presented in a new window.
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