congl

Glossary

0-9

€STR – Euro Short-term Rate
'000 – Unit is in thousands.
24/7 – 24 hours a day, 7 days a week

A

A$ – Australian dollar; ISO 4217 currency code AUD
AAWI – Annualised Average Wage Increases
ABARES – Australian Bureau of Agricultural and Resource Economics and Sciences
ABCP – Asset-backed commercial paper
ABF – Asian Bond Fund
ABF1 – Asian Bond Fund 1. An initiative of the EMEAP central banks aimed at deepening regional financial markets. The first stage (ABF1) is a fund investing in US dollar sovereign and quasi-sovereign bonds issued in eight of the eleven EMEAP economies (i.e. excluding Australia, Japan and New Zealand).
ABF2 – Asian Bond Fund 2. An initiative of the EMEAP central banks aimed at deepening regional financial markets. The second stage (ABF2) comprises eight single-market funds that invest in domestic currency-denominated government and quasi-government currency bonds issued in these economies, as well as the Pan-Asian Bond Index Fund (PAIF).
ABN – Australian Business Number
ABS – Australian Bureau of Statistics. The central statistical authority for the Australian Government.
AC – Companion of the Order of Australia
ACC – Asian Consultative Council (of the BIS). Its main purpose is to provide a vehicle for communication between the Asian & Pacific members of the BIS and the Board of Management on matters of interest and concern to the Asian central banking community, including the operation of the BIS Hong Kong Office.
ACCC – Australian Competition and Consumer Commission. A Commonwealth statutory authority responsible for ensuring compliance with the Competition and Consumer Act 2010 (formerly the Trade Practices Act 1974) and the provisions of the Conduct Code. The Commission's consumer protection work complements that of State and Territory consumer affairs agencies.
accrual accounting – Revenues and expenses are recorded as they are earned or incurred , regardless of whether cash has been received or disbursed. For example, sales on credit would be recognised as revenue, even though the debt may not be settled for some time.
ACIC – Australian Criminal Intelligence Commission
acquirer – An institution that provides a merchant with facilities to accept card payments
ACT – Australian Competition Tribunal
ADI – Authorised deposit-taking institution. ADIs (banks, building societies and credit unions) are supervised by the Australian Prudential Regulation Authority (APRA).
ADL – Autoregressive Distributed Lag model
AEDT – Australian Eastern Daylight-saving Time
AEST – Australian Eastern Standard Time
AFC – Asian Financial Crisis
AFIs – All Financial Intermediaries
AFMA – Australian Financial Markets Association. A national industry body representing about 200 organisations which participate in the Australian over-the-counter (OTC) wholesale financial markets. Transactions include foreign exchange, interest rate products, financial derivatives, repurchase agreements, commodities, equity and electricity derivatives.
AFP – Australian Federal Police
AFXC – Australian Foreign Exchange Committee
agency banking – Since 1 July 1999 all Australian Government departments and agencies have been responsible for their own individual banking arrangements. Under devolved banking arrangements, agencies are required to test the services previously provided by the Reserve Bank of Australia (RBA) against what is available from other financial institutions. However, the Australian Government's core account, the Official Public Account, remained with the RBA. A system sweeps balances of Australian Government departments and agencies from their transactional banker to the Official Public Account at the RBA each night.
aggregate demand – Gross domestic product as measured by the sum of final expenditure on goods and services produced.
aggregate supply – Gross domestic product as measured by the value of goods and services produced.
AGS – Australian Government Securities. Include all securities issued by the Australian Government at tenders conducted by the AOFM (and by the Reserve Bank of Australia acting as agent for the Australian Government prior to 23 October 2006). They comprise Treasury bonds, Treasury notes, Treasury indexed bonds and, previously, Treasury adjustable rate bonds. These securities are issued either by tender or syndication.
AGV – Analytical Group on Vulnerabilities (of the FSB). The Analytical Group on Vulnerabilities (AGV) provides an analytical forum to discuss new and evolving risks to the global financial system and thereby support the work of the SCAV.
AIF – Automated Information Facility. An automated message service used by banks to assist with credit and liquidity management.
AIFRS – Australian equivalents to International Financial Reporting Standards
AM – Member of the Order of Australia
AML/CTF – Anti-Money Laundering/Counter-Terrorism Financing
AMMD – Authorised Money Market Dealers
AMUG – Australian Member User Group
ANAO – Australian National Audit Office
ANZSIC – Australian and New Zealand Standard Industrial Classification
AO – Officer of the Order of Australia
AOFM – Australian Office of Financial Management. A prescribed agency, within the Treasury portfolio, responsible for the Australian Government's debt management activities, which includes running tenders of CGS and advising the Treasurer on all aspects of Australian Government debt management.
AONIA – AUD Overnight Index Average. AONIA is an acronym for the Cash Rate used in financial markets.
APC – Australian Payments Council
APCS – Australian Paper Clearing System operated by Australian Payments Network (AusPayNet)
APEC – Asia-Pacific Economic Cooperation forum. APEC was established in 1989 and has become the primary regional vehicle for promoting open trade and practical economic cooperation. It has 21 member countries, including Australia.
API – Application programming interface
appreciation – An increase in the value of an asset. In foreign-exchange terms, it is a relative increase in the value of one currency compared to another.
APPs – Australian Privacy Principles, replaced the Information Privacy Principles and the National Privacy Principles on 12 March 2014.
APRA – Australian Prudential Regulation Authority. APRA is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance companies, friendly societies, and most members of the superannuation industry.
ARDB – Australian Resources Development Bank
ARRC – the Alternative Reference Rates Committee, US working group on LIBOR transition
ASB – Australian Savings Bond. A superseded form of fixed-interest coupon bond, cashable on thirty days' notice after an initial holding period.
ASD – Australian Signals Directorate
ASEAN – Association of Southeast Asian Nations
ASF – The Australian Securitisation Forum is an industry body representing participants in the securitisation and covered bond markets.
ASIC – Australian Securities and Investments Commission. One of three Australian Government bodies (the others being the Australian Prudential Regulation Authority and the Reserve Bank of Australia) that regulates financial services. ASIC is the national regulator of Australia's companies. ASIC has responsibility for market protection and consumer integrity issues across the financial system.
ASX – The Australian Securities Exchange is Australia's primary national exchange for equities, warrants and equity-related derivatives.
ASX 24 – ASX 24 is a derivatives market operated by the ASX group. Formerly the Sydney Futures Exchange.
ASX Clear (Futures) Pty Ltd – It provides central counterparty services for the ASX 24 market. It is a wholly owned subsidiary of the ASX group. Formerly SFE Clearing Corporation.
ASX Clear Pty Ltd – It provides central counterparty services for a range of financial products traded on the ASX, including equities, warrants, and equity-related derivatives. ASX Clear is a wholly owned subsidiary of the ASX group. Formerly the Australian Clearing House.
ASX Net – The ASX Net network infrastructure (previously Austraclear National Network Infrastructure (ANNI))
ASX Settlement Pty Ltd – It provides settlement services for ASX markets, as well as for a small number of transactions undertaken on the National Stock Exchange (NSX). ASX Settlement is a wholly owned subsidiary of the ASX group. Formerly the ASX Settlement and Transfer Corporation.
ATFC – Advisory Task Force on the Codes
ATM – Automated Teller Machine
ATO – Australian Taxation Office
AUD – Australian dollar (ISO 4217 currency code); A$ is more commonly used.
AusPayNet – Australian Payments Network. A public company owned by banks, building societies and credit unions which has specific accountability for key parts of the Australian payments system, particularly payments clearing operations.
AUSTRAC – Australian Transaction Reports and Analysis Centre is Australia's anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit.
Austraclear – Austraclear provides settlement services for the OTC debt market and for derivatives traded on the ASX and ASX 24 markets. Austraclear is a wholly owned subsidiary of the ASX group.
Australian Government Securities – Include all securities issued by the Australian Government at tenders conducted by the AOFM (and by the Reserve Bank of Australia acting as agent for the Australian Government prior to 23 October 2006). They comprise Treasury bonds, Treasury notes, Treasury indexed bonds and, previously, Treasury adjustable rate bonds. These securities are issued either by tender or syndication.
Australian Securities Exchange – The Australian Securities Exchange is Australia's primary national exchange for equities, warrants and equity-related derivatives.
AWOTE – Average weekly ordinary-time earnings. A measure of earnings for full-time employed adults compiled by the Australian Bureau of Statistics.

B

balance of payments – A summary of the economic transactions between residents of one country and residents of other countries.
bank accepted bill of exchange – A bank accepted bill of exchange is a bill of exchange that lists a bank as the acceptor of the bill. As an acceptor, a bank has a liability to pay the holder the face value of the bill at maturity. In certain circumstances, the liability is contingent on the borrower, or drawer, defaulting.
bankruptcy – A legal status, which can be initiated by a creditor or person concerned, whereby the bankrupt's property is vested in a trustee and, with the exception of certain personal and professional property, is available for distribution to creditors.
BAS – Business activity statement
basis point – A basis point is 1/100th of 1 per cent or 0.01 per cent, so 100 basis points (bps) is equal to 1 percentage point. The term is used in money and securities markets to define differences in interest or yield. If an interest rate were to increase from 2 per cent to 3 per cent, it is said to have risen by 100 basis points (bps) or one percentage point.
BBSW – Bank Bill Swap Rate
BCBS – Basel Committee on Banking Supervision (of the BIS)
BCOM – Bloomberg Commodity Index
BCS – Business Characteristics Survey
BECS – Bulk Electronic Clearing System operated by Australian Payments Network (AusPayNet)
BETF – Black economy taskforce
bid – The price offered to purchase securities in the primary market. In relation to a tender, a bid also includes the volume willing to be bought at the price offered.
bill rate – The bill rate is the effective yield to maturity earned by the holder of a bill. The yield is usually expressed as a per annum rate.
billion – One thousand million.
BIS – Bank for International Settlements. An international organisation, based in Switzerland, which encourages co-operation among central banks and other agencies in pursuit of monetary and financial stability and provides banking facilities for central banks.
BKBM – Bank bill benchmark
Blackout Financial Instruments – Blackout Financial Instruments’ include interest rate products (including but not limited to bonds, bills, notes, certificates of deposit and term deposits), shares, warrants, options, corporate bonds and foreign exchange (except for travel purposes), active investment choice modifications to any superannuation fund account, and the rolling over of superannuation funds into a complying fund.
BLADE – Business Longitudinal Analysis Data Environment
BNPL – Buy now, pay later
bond – In general terms, a bond is a statement of debt with a medium to long term to maturity at the time it is issued. The holder of a bond is a lender to the issuer. As such, the statement gives the issuer an obligation to provide the holder with an income payment and/or a stream of income payments over the life of the bond and to repay the principal. The risk that the issuer cannot fulfil their obligation varies from issuer to issuer and over time.
borrower – A person or entity that incurs a debt to a lender on agreed terms.
BPAY – BPAY is a payments clearing organisation owned by a group of retail banks. Individuals who hold accounts with a BPAY participating financial institution can pay billing organisations which participate in BPAY, using account transfers initiated by phone or internet. The transfers may be from savings, cheque or credit card accounts.
BPO – Business Process Outsourcing
Bps – Basis points. A basis point is 1/100th of 1 per cent or 0.01 per cent. The term is used in money and securities markets to define differences in interest or yield.
broad money – The widest definition of money published by the Reserve Bank of Australia (RBA). Broad money is defined as currency plus ADI deposits from the non-AFI private sector, plus other short-term liquid AFI liabilities held by the non-AFI private sector.
BSB – Bank State Branch
Bulletin – A quarterly publication by the Reserve Bank of Australia that contains feature articles.
business cycle – The period between peaks or troughs of macroeconomic activity.

C

CAC – Collective Action Clause. A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.
CAC Act – Commonwealth Authorities and Companies Act 1997 (which was replaced by the Public Governance, Performance and Accountability Act 2013 on 1 July 2014).
capital market – A market for medium to long-term financial instruments. Financial instruments traded in the capital market include shares, and bonds issued by the Australian Government, State governments, corporate borrowers and financial institutions.
card issuer – An institution that provides its customers with debit or credit cards.
cash accounting – Revenues and outlays recorded in an organisation's accounts when cash is collected or spent.
Cash Rate – The interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis. The cash rate is the Reserve Bank of Australia's operational target for the implementation of monetary policy. It is also an important financial benchmark in the Australian financial markets. It is used as the reference rate for Australian dollar Overnight Indexed Swaps (OIS) and the ASX 30 Day Interbank Cash Rate Futures. The Reserve Bank of Australia is the administrator of the cash rate. The cash rate is calculated as the weighted average interest rate on overnight unsecured loans between banks settled in the Reserve Bank Information and Transfer System (RITS). The Cash Rate is also known by the acronym AONIA in financial markets.
cash rate target – As in most developed countries, the stance of monetary policy in Australia is expressed in terms of a target for an overnight interest rate. The rate used by the Reserve Bank of Australia is the cash rate (also known as the interbank overnight rate). When the Reserve Bank Board decides that a change in monetary policy should occur, it specifies a new target for the cash rate. A decision to ease policy is reflected in a new lower target for the cash rate, while a decision to tighten policy is reflected in a higher target.
Cat No – Catalogue number
CAT/CAPs – Credit Authorisation Terminals with capture functionality
CATs – Credit Authorisation Terminals
CBDC – Central Bank digital currency - used to refer to a digital version of fiat currency, a form of digital money that is a liability of the central bank rather than a commercial bank and which is legal tender. Similar to cash and commercial bank deposits, a CBDC would be denominated in the sovereign currency and convertible at par with other forms of money.
CBO – Congressional Budget Office
CCP – Central counterparty
CCP Standards – Financial Stability Standards for Central Counterparties
CD – Certificate of deposit
CDB – Commonwealth Development Bank
CEDA – Committee for Economic Development of Australia
central bank – A non-commercial bank, which may or may not be independent of government, which has some or all of the following functions: conduct monetary policy; oversee the stability of the financial system; issue currency notes; act as banker to the government; supervise financial institutions and regulate payments systems.
CFR – Council of Financial Regulators comprising of the Reserve Bank of Australia (RBA), which chairs the CFR; the Australian Prudential Regulation Authority (APRA); the Australian Securities and Investments Commission (ASIC); and The Treasury.
CFTC – Commodity Futures Trading Commission
CGFS – Committee on the Global Financial System. A committee of the BIS which seeks to support central banks in developing appropriate policy recommendations in relation to financial stability, intermediation and transparency.
CGS – Commonwealth Government Securities. Australian Government Securities were formerly referred to as Commonwealth Government Securities.
charge card – A charge card is a card whose holder has been granted a non-revolving credit line enabling the holder to make purchases and possibly make cash advances. A charge card does not offer extended credit; the full amount of any debt incurred must be settled at the end of a specified period.
CHESS – Clearing House Electronic Sub-register System. CHESS is a settlement system for Australian equities operated by ASX Settlement.
Chi-X Australia Pty Ltd – Chi-X Australia is a securities and derivatives exchange
Clearing – The process of transmitting, reconciling and in some cases confirming payment instructions prior to settlement; it may include netting of instructions and the calculation of final positions for settlement.
CLF – Committed Liquidity Facility
Close-out netting – An arrangement to settle all contracted but not yet due liabilities to, and claims on, an institution by a single payment, immediately upon the occurrence of one of a list of defined events such as the appointment of a liquidator to that institution.
CLS – Continuous Linked Settlement. A process enabling simultaneous foreign exchange settlement across the globe, eliminating the settlement risk caused by delays arising from time-zone differences.
CLS Bank – CLS Bank is a multi-currency bank, regulated by the Federal Reserve Bank of New York, which uses central bank funds to simultaneously settle cross-currency transactions in real time through a process known as Continuous Linked Settlement (CLS).
CMA – Competition and Markets Authority (UK)
CME – Chicago Mercantile Exchange Inc.
CNP – Card not present
CODB – Cost of doing business
COGS – Cost of goods sold
COIN – Community of Interest Network
Commonwealth Government Securities – Australian Government Securities were formerly referred to as Commonwealth Government Securities.
Compendium of Standards – The Compendium is an initiative of the Financial Stability Board (FSB) and a joint product of the standard-setting bodies represented on the FSB. It highlights 12 core standards and around 60 others relevant for sound financial systems. The Compendium is updated on an ongoing basis. The 12 core standards cover matters such as monetary and fiscal transparency, corporate governance and prudential supervision.
counterfeit – A representation of currency intended to deceive recipients.
CP – Card present
CPI – Consumer Price Index. A general measure of price inflation for the household sector compiled and published by the Australian Bureau of Statistics.
CPMI – Committee on Payments and Market Infrastructures
CPRs – Commonwealth Procurement Rules
CPS – Consumer Payments Survey
CPSS – Committee on Payment and Settlement Systems. On 1 September 2014 this Committee changed its name to the Committee on Payments and Market Infrastructures.
CR4 – Four concentration ratio - the combined market share of the top four largest producing firms
CRA – Credit rating agency
credit card – A credit card is a card whose holder has been granted a revolving credit line. The card enables the holder to make purchases and/or cash advances up to a pre-arranged limit. The credit granted can be settled in full by the end of a specified period or in part, with the balance taken as extended credit. Interest may be charged on the transaction amounts from the date of each transaction or only on the extended credit where the credit granted has not been settled in full.
credit risk/exposure – The risk that a counterparty will not settle an obligation for full value, either when due or thereafter. In 'exchange-for-value' systems, the risk is generally defined to include replacement risk (the risk of having to replace a contract at a potentially unfavourable price) and principal risk.
CRVS – Cheque Reconciliation and Verification System
CS – Clearing and settlement
CSA – Credit Support Annex
CSC – Customer Security Controls
CSIRO – Commonwealth Scientific and Industrial Research Organisation
CUBS – Credit Unions and Building Societies

D

DCE – Digital currency exchange
DCO – Derivatives Clearing Organisation
DDRS – DTCC Data Repository (Singapore) Pte Ltd
DE – Direct Entry
debit card – A debit card is a card that enables the holder to access funds in a deposit account at an authorised deposit-taking institution.
Deferred Net Settlement System – A settlement system in which each participant settles (typically by means of a single payment or receipt) its net position, which results from the payments made and received by it, at some defined time after payments have been made.
denomination – The face value of a currency item: may be notes or coin.
depreciation – A fall in the value of an asset. In foreign-exchange terms, it is a relative decrease in the value of one currency compared to another.
deregulation – The progressive removal of controls on entry and operations, intended to enhance competition, and raise the productivity of the major entities in the industry concerned.
derivative – A financial contract whose value is based on, or derived from, another financial instrument (such as a bond or share) or a market index (such as the Share Price Index). Examples of derivatives include futures, forwards, swaps and options.
Designation – The formal notification of action taken to exercise powers conferred by legislation.
direct debit – A pre-authorised debit on the payer's bank account initiated by the recipient (payee).
direct entry credit – A pre-planned credit from one account to another.
direct entry payment – A direct debit or credit.
DISs – Deposit Insurance Schemes
DLT – Distributed ledger technology
DMF – Default management framework
DNDC – Dual-network debit card
domestic government securities – Domestically issued government securities comprising Australian Government Securities (AGS) and securities, known as semi-government securities, issued by the central borrowing authorities of the State and Territory governments.
DSGE model – Dynamic Stochastic General Equilibrium model
D-SIB – Domestic systemically important bank
DSR – Debt-servicing ratio
DTR – Derivative Transaction Rules
dual-network card – A payment card that can be used to initiate transactions, typically from the same deposit account, for two different payment processing networks. For example, a debit card (sometimes also known as an ATM card) that can be used to make a payment via either the eftpos network or one of the international scheme networks. These cards usually have an international scheme logo (Mastercard or Visa) on one side and the eftpos logo on the other.
DvP – Delivery-versus-Payment

E

EBA – European Banking Authority
EBAs – Enterprise Bargaining Agreements
EC – European Commission
ECM – Error-correction ratio
Economic and Financial Statistics (EFS) collection – The set of forms used to compile financial aggregates and meet the data needs of policymakers.
ECU – European currency unit
EDLP – Everyday low price
EEA – European Economic Area
EEO – Equal Employment Opportunity
EFT – Electronic funds transfer
EFTPOB – Electronic Funds Transfer at Point of Bank
EFTPOS – electronic funds transfer at point of sale. The eftpos system is a domestic debit card system managed by eftpos Payments Australia Limited.
EME – Emerging market economies
EMEAP – Executives' Meeting of East Asia-Pacific Central Banks. EMEAP is a co-operative forum of eleven central banks and monetary authorities in the East Asia and Pacific region comprising the Reserve Bank of Australia, the People's Bank of China, the Hong Kong Monetary Authority, Bank Indonesia, the Bank of Japan, the Bank of Korea, Bank Negara Malaysia, the Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore and the Bank of Thailand.
EMH – Efficient markets hypothesis. The view that security or stock prices reflect all available information and it is impossible for an investor to consistently 'beat the market'.
EMIR – European Market Infrastructure Regulation
EMV – EuroPay, MasterCard & Visa
ePAL – eftpos Payments Australia Ltd
equity market – A market where investors buy and sell securities providing ownership of a company's shares.
ERG – Employee Resource Group
ES – Exchange Settlement (account, balances or funds)
ESA – Exchange Settlement Account. An account held at the Reserve Bank of Australia by financial institutions to settle financial obligations arising from the clearing of payments.
ESEA – Emerging south east Asia
ESMA – European Securities and Markets Authority
ETF – Exchange traded fund
exchange rates – The price of one currency expressed in terms of another currency. Any exchange rate can be quoted two ways, e.g. Australian dollars per US dollar (USD/AUD) or US dollars per Australian dollar (AUD/USD). The convention for the Australian dollar is that it is quoted as the foreign currency price of the Australian dollar. This is sometimes referred to as the 'Indirect' method of quoting.
Exchange Settlement Account – An account held at the Reserve Bank of Australia by financial institutions to settle financial obligations arising from the clearing of payments.
Exchange Settlement Account balances – The sum of balances held in Exchange Settlement Accounts with the Reserve Bank.

F

FAI – Fixed asset investment
FASB – US Financial Accounting Standards Board
FAST – Fast and Secure Transfers
FC – Finance companies
FCA – Financial Conduct Authority
FCA Act – Financial Corporations Act 1974
FCGF – Finance companies and general financiers
FCL – Flexible Credit Line
FDI – Foreign direct investment
FEX – Financial and Energy Exchange
FHB – First Home Buyers
FIN – Financial Innovation Network (of the FSB)
financial (fiscal) year – The 12-month period decided upon for financial measurement. In Australia it is usually from 1 July, to 30 June in the following year.
financial aggregates – A Reserve Bank of Australia data series specifying measures of the supply of money and credit. It includes some or all of: currency on issue; current deposits with banks; other deposits of the private non-bank sector with banks; borrowings from the private sector by non-bank depository corporations; and credit (loans, advances and bills discounted to the private sector).
financial conglomerates – Financial institutions which undertake several activities such as banking, stock broking, insurance and funds management.
financial disturbance – An event or incident, which causes a significant loss of confidence by depositors or investors in a financial institution or a disruption to financial markets.
financial institution – A company whose primary function is to intermediate between lenders and borrowers in the economy.
financial markets – A generic term for the markets in which financial instruments are traded. Financial instruments have no intrinsic value of themselves. They represent a claim over real assets or a future income stream. The four main financial markets are the foreign exchange market, the fixed interest or bond market, the share or equity market and the derivatives market.
financial sector – The sector of the economy that comprises financial institutions and financial markets.
Financial Stability Board (formerly Financial Stability Forum) – Financial Stability Board. The Financial Stability Board (FSB) was formed in April 2009 as the re-establishment of the Financial Stability Forum (FSF), which had existed since 1999. The FSB has a mandate to assess the vulnerabilities affecting the financial system, identify and oversee action to address them, and promote co-operation and information sharing among authorities responsible for financial stability. Its membership comprises the original FSF members, G20 countries not already included in the FSF, Spain, and a number of international groupings of regulators and supervisors, and committees of central bank experts.
Financial Stability Review – The Reserve Bank issues a Financial Stability Review half-yearly. These reviews assess the currenct condition of the financial system and potential risks to financial stability, and survey policy developments designed to improve financial stability.
financial system architecture – The structure of financial system regulation, supervision and intermediation.
fintech – financial technology
fiscal transparency – The facility which enables investors and other interested parties to satisfy themselves as to the nature and quality of the decision process pursued by policy-makers in government or the corporate entity concerned. One of the 12 key standards identified by the Financial Stability Forum as the minimum required for good practice in sound financial systems. Fiscal transparency strengthens accountability of the government and decreases the risk of maintaining unsustainable policies.
floating exchange rate – Exchange rates determined by market forces based on the demand for and supply of a currency.
FMA Act – Financial Management and Accountability Act 1997 (which was replaced by the Public Governance, Performance and Accountability Act 2013 on 1 July 2014).
FMI – Financial market infrastructure
fmiCBCM – Cross-border Crisis Management Group for Financial Market Infrastructures (subgroup of FSB ReSG)
FOI – Freedom of Information, a regime under which individuals have the right to request access to documents from Australian Government ministers and most government agencies. The regime is established by the FOI Act.
FOI Act – Freedom of Information Act 1982
FOMC – Federal Open Market Committee
foreign-currency liquidity – The capacity to exchange foreign currency for domestic currency without significantly moving the exchange rate. The extent to which a foreign currency may be traded readily without causing a significant movement in price.
Four Pillars Policy – An Australian Government policy that there should be no fewer than four major banks to maintain appropriate levels of competition in the banking sector.
FPS – Faster Payments Service
FRB/US – Model of the US Economy used by the Board of Governors of the Federal Reserve System
FRR – Financial Reporting Rule
FSAP – Financial Sector Assessment Program. A joint International Monetary Fund (IMF) and World Bank program, seeking to identify the strengths and vulnerabilities of countries' financial systems, and to determine how key sources of risks are being managed. For developing countries, assessments are used to ascertain developmental and technical assistance needs, and to help prioritise policy responses. For developed countries, FSAP assessments are conducted solely by the IMF and do not cover developmental issues.
FSB (formerly FSF) – Financial Stability Board. The Financial Stability Board (FSB) was formed in April 2009 as the re-establishment of the Financial Stability Forum (FSF), which had existed since 1999. The FSB has a mandate to assess the vulnerabilities affecting the financial system, identify and oversee action to address them, and promote co-operation and information sharing among authorities responsible for financial stability. Its membership comprises the original FSF members, G20 countries not already included in the FSF, Spain, and a number of international groupings of regulators and supervisors, and committees of central bank experts.
FSI – Financial System Inquiry
FSS – Financial Stability Standards
FSS – Fast Settlement Service (of RITS)
FTE – full-time equivalent
FWC – Fair Work Commission
FX – Foreign exchange
FXWG – Foreign Exchange Working Group (of the BIS)

G

G20 – Group of Twenty countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and USA; plus representatives of the European Union, IMF and World Bank. The G20 is a forum for international economic co-operation. Members meet at a variety of levels to broaden the dialogue on key economic and financial policy issues and to promote co-operation to achieve strong, sustainable, and balanced economic growth
G7 – Group of Seven countries: Canada, France, Germany, Italy, Japan, UK and the USA. The G7 deals with issues of primary interest to developed economies.
G8 – Group of Eight countries: G7 countries and Russia.
GDES – Government Direct Entry Service. The Government Direct Entry Service (GDES) is a Reserve Bank of Australia proprietary system which processes a large volume of Australian Government payments. Direct credit and direct debit transactions are received electronically via direct communication links or RBAnet. Transactions are processed through the GDES system and distributed to financial institutions via APCA's Common Payments Network.
GDP – Gross Domestic Product. A key measure of the value of economic production in the economy. GDP is determined in one of three ways: the value of goods and services produced less the cost of production; the sum of incomes generated by production; the sum of final expenditure on goods and services produced plus exports minus imports. An average of the three approaches may be calculated and is also referred to as GDP.
GF – General Financiers
GFC – Global Financial Crisis
GFXC – Global Foreign Exchange Committee
GHOS – Group of Governors and Heads of Supervision
GMRA – Global Master Repurchase Agreement - a model legal agreement designed for parties transacting repos and is published by the International Capital Market Association (ICMA), which is the body representing the bond and repo markets in Europe. The GMRA is the principal master agreement for cross-border repos globally, as well as for many domestic repo markets.
Government EasyPay – Government EasyPay is a telephone and Internet collection service available to Australian Government agencies.
GPF – Government Partnership Fund (with Indonesia)
GSCI – S&P Goldman Sachs Commodity Index
G-SIB – Global systemically important bank
G-SIFI – Global systemically important financial institution
GST – Goods and Services Tax
GVA – Gross value added

H

HAC Rule – Honour All Cards Rule
HFCE – household final consumption expenditure
HILDA Survey – The Household, Income and Labour Dynamics in Australia (HILDA) Survey is a household-based panel study which began in 2001. It collects information about economic and subjective well-being, labour market dynamics and family dynamics. Interviews are conducted annually with all available adult members of each household in the sample and members are followed over time. The HILDA Survey was initiated and is funded by the Australian Government Department of Social Services, and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute).
HLI – Highly leveraged institution, in which debt represents a high proportion of aggregate liabilities and capital represents a low proportion. The most well known are also called hedge funds. Hedge funds are typically pooled investment vehicles that are privately organised and administered by professional investment managers.
HM Treasury – Her Majesty’s Treasury
HQLA – High-quality liquid assets
HVCS – High-value Clearing System operated by Australian Payments Network (AusPayNet)

I

IAC – Issuers and Acquirers Community - AusPayNet established the Issuers and Acquirers Community (IAC) on 1 July 2015, a forum for discussions, establishing rules, standards and guidelines, and provision for a range of specialty services for all card payments in Australia.
IAC Framework – IAC Framework – the Issuers and Acquirers Community Framework operated by Australian Payments Network (AusPayNet).
IAIS – International Association of Insurance Supervisors
IASB – International Accounting Standards Board
ICMA – International Capital Market Association
ICOs – Initial coin offerings
ICS – Initial Convenience Service
ICT – Information and Communications Technology
IFR – Interchange Fee Regulation
IMF – The International Monetary Fund (IMF) is an organisation of 189 countries, that works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty.
IMSG – Implementation Monitoring Standing Group (a CPMI-IOSCO group)
Index of Commodity Prices – A Reserve Bank of Australia-compiled index which provides a measure of price movements in rural and non-rural (including base metals) commodities in Australian Dollars (AUD), Special Drawing Rights (SDR) and United States Dollars (USD).
Indicative – Data are not necessarily observed but calculated from reference points. For a financial asset or product, an ‘indicative’ price may not necessarily correspond to the price at which dealers in that market would execute transactions; for an example see Notes for Table F11.
indicative mid rates – The daily schedule of annual returns expressed as a percentage of the prices of specific fixed-coupon bonds, capital-indexed bonds and Treasury notes issued by the Australian Government. They are closing rates as sourced from Yieldbroker Pty Limited (except for Treasury Indexed Bond yields prior to 18 September 2013, which are 4.30 pm mid-rates sourced from a survey of bond dealers by the RBA).
inflation – A measure of the change (increase) in the general level of prices.
inflation target – A tool to guide monetary policy expressed as a preferred range or figure for the rate of increase in prices over a period. In Australia, the inflation target is between 2 and 3 per cent per annum on average over the course of the business cycle.
insolvency – A situation where an entity has insufficient assets to cover the value of its liabilities, resulting in an inability to meet its financial obligations as they fall due.
interbank overnight rate – The interbank overnight rate (also known as the cash rate) is the interest rate which banks pay or charge to borrow funds from or lend funds to other banks on an overnight unsecured basis. The Reserve Bank of Australia uses this rate as an operational target for the implementation of monetary policy. The Reserve Bank of Australia calculates and publishes this rate each day on the basis of data collected directly from banks. The interbank overnight rate has been published by the Reserve Bank of Australia since June 1998.
interchange fee – A fee paid between card issuers and acquirers when cardholders make transactions.
interest rate – The term used to describe the cost of borrowing money or the return to the owner of the funds which are invested or lent out. It is usually expressed as a percent per annum of the amount of money borrowed, lent or invested.
international reserves – Holdings by a central bank of foreign exchange and gold.
IOSCO – International Organization of Securities Commissions. An international organisation whose members co-operate to promote high standards of regulation in order to protect investors and ensure that markets are fair, efficient and transparent.
IPCC – Intergovernmental Panel on Climate Change
IPS – Information Publication Scheme
IRAP – Information Security Risk Assessment Program
IRD – Interest Rate Derivatives
IRFs – Impulse Response Functions
IRS – Interest rate swaps
ISDA – International Swaps and Derivatives Association
ISMA – International Securities Market Association
ISO – International Organisation for Standardisation
IT – Information Technology

J

JEFG – Joint Economic Forecasting Group

L

labour market – A collective term for employment, unemployment, participation rates and wages.
LCH – LCH Limited. LCH registered its change of name (from LCH.Clearnet Limited) in Australia under the Corporations Act 2001 on 14 July 2017. It is licensed in Australia to provide central counterparty services for OTC interest rate derivatives and inflation rate derivatives.
LCIR – Loan Consolidation and Investment Reserve
LCR – Liquidity Coverage Ratio
least-cost routing (LCR) – When a merchant chooses the lowest-cost network for processing a contactless debit card transaction. The cardholder can override least-cost routing by inserting their card into the terminal and selecting their preferred network. Least-cost routing can only occur for contactless ‘dual-network’ debit card transactions.
lender – A person or institution which provides loans on agreed terms to borrowers.
lending and credit aggregates – Reserve Bank of Australia measures of lending and credit made available to the private non-finance sector (including public trading enterprises) or, the government sector by those financial intermediaries whose liabilities are included in broad money. Broad money is defined as currency plus bank current deposits of the private non-bank sector, plus all other bank deposits of the private non-bank sector plus borrowings from the private sector by non-bank financial intermediaries (NBFIs), less the latter's holdings of currency and bank deposits.
LIBOR – The London Inter-Bank Offered Rate (LIBOR) is a reference rate based on the interest rates at which banks offer to transact with each other on an unsecured basis in the London market. The LIBOR reflects quotes by a panel of banks for maturities of up to 12 months for the euro, Japanese yen, Swiss franc, UK Pound sterling, and the US dollar. The reference rates are set at 11.00 am London time.
liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.
liquidity management – Activities within a financial institution to ensure that holdings of liquid assets (e.g. cash, bank deposits and other financial assets) are sufficient to meet its obligations as they fall due, including unexpected transactions.
LVR – Loan-to-valuation ratio

M

M&A – mergers and acquisitions
macro economy – The economy looked at as a whole or in terms of major components measured by aggregates such as gross domestic product, the balance of payments and related links, in the context of the national economy. This contrasts with microeconomics which focuses upon specific firms or industries.
MAEs – Major advanced economies
margin loans – Loans which are made to investors to purchase financial assets, usually equities or units in managed funds. These assets are used as security for the margin loan. Margin loan clients are required to keep the ratio of borrowings to the value of underlying security below a pre-arranged level. When the ratio goes above this level, lenders will make a margin call, requiring the borrower to either repay some of the loan or provide additional security to support the loan.
margin payment – A payment made to meet a margin call, to cover an adverse movement in the price of physical assets, such as equities or units in managed funds, or derivatives, such as futures, options or swap contracts.
MARTIN – the RBA's macro econometric model
MAS – Monetary Authority of Singapore
MC – Markets Committee (of the BIS)
MCPs – marginal propensities to consume
MEF – multi-employee fund
metadata – Metadata is the information that defines and describes data.
MFSC – Monetary and Financial Stability Committee
MMC – Money Market Corporation
MMFs – Money Market Funds
monetary aggregates – A series of measures of the values of currency on issue, current deposits with banks, other deposits with banks, plus borrowings from the private sector by non-bank financial institutions (NBFIs) less currency and bank deposits by NBFIs. Components consist of: 'M1' defined as currency plus bank current deposits from the private non-bank sector; 'M3' defined as M1 plus all other authorised deposit-taking institution (ADI) deposits from the private non-ADI sector, plus certificates of deposit issued by banks, less ADI deposits held with one another; 'Broad money' defined as M3 plus other short-term liquid AFI liabilities held by the private sector, except those held by other AFIs ; 'Money base' defined as holdings of banknotes and coins by the private sector plus deposits of banks with the Reserve Bank of Australia (RBA) and other RBA liabilities to the private non-bank sector
monetary policy – monetary policy involves using interest rates to influence aggregate demand, employment and inflation in the economy.
money market – The market which deals in short-term discount securities such as Treasury notes, bank bills and promissory notes. Major participants in this market include the Reserve Bank of Australia, banks, superannuation funds, insurance companies, investment trusts, investment banks, building societies and large corporates.
Moody's – An international statistical rating organisation and data provider.
MOU – Memorandum of Understanding. A statement specifying a common understanding relative to responsibilities and authorities on matters on common interest. For example the RBA has entered into MOUs with the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).
MP – member of parliament
MPG – Macroprudential Supervision Group (of the BCBS)
MSCI ACWI Index – MSCI's All Country World Index (ACWI) is composed of 2,400 constituents, 11 sectors, and is the industry’s accepted gauge of global stock market activity. It provides a seamless, modern and fully integrated view across all sources of equity returns in 47 developed and emerging markets.

N

NAIDOC – National Aborigines and Islanders Day Observance Committee
NAIRU – Non-accelerating inflation rate of unemployment
NASDAQ – National Association of Securities Dealers Automated Quotation. A US stock price index for companies listed on the NASDAQ exchange. Typically, these companies are in high technology-based sectors.
NAV – net asset value
NBB – National Bank of Belgium
NBFI – non-bank financial intermediation
NBFIs – Non-bank financial institutions
NBS – National Banknote Site. A purpose-built facility for the storage, distribution and processing of banknotes.
NDRC – National Development and Reform Commission
Net interest margin – A measure of the difference between a bank’s interest earnings and interest expenses, expressed as a proportion of their interest-earning assets.
Net interest spread – A measure of the difference between a bank’s average rate of interest-bearing assets and its average rate of interest-bearing liabilities.
NFC – Near Field Communication
NGB – Next Generation Banknote
NGF – National Guarantee Fund
NGFS – Network for Greening the Financial System
NHP – Net Hedging Positions
NIST – National Institute of Standards and Technology
Nominal interest rate – The nominal interest rate refers to the cost of borrowing money before adjustment for inflation i.e. it includes compensation for the expected erosion of the value of the borrowed funds due to inflation. It is the cost visible to the borrower, and is composed of the real interest rate plus inflation.
non-tradables – Non-tradables refers to things that are not readily exported or imported, like medical services, housing and haircuts. As such, their prices are largely determined domestically. By comparison, tradable items are things whose prices are largely determined on the world market like oil, motor vehicles and clothing. As such, the prices of tradable items are heavily influenced by exchange rate movements, whereas the prices of non-tradables largely reflect domestic factors.
NPA – Note Printing Australia Limited. Wholly owned subsidiary of Reserve Bank of Australia. Based at Craigieburn, Victoria, NPA prints banknotes for Australia and some other countries on polymer substrate.
NPP – New Payments Platform
NPPA – New Payments Platform Australia Limited
NQRS – Note Quality Reward Scheme
NSA – not seasonally adjusted
NSFR – Net Stable Funding Ratio
Numismatics – Numismatics is generally defined as the collecting of coins, commemorative or military medals and, more recently, the collecting of banknotes.

O

OECD – The Organisation for Economic Co-operation and Development (OECD) is an organisation of 34 countries that seeks to promote policies that will improve the economic and social well-being of people.
OFC – Offshore financial centre
offer – Price offered to buyers.
official reserve assets (RBA) – The Reserve Bank of Australia's holdings of foreign exchange, Special Drawing Rights and gold, and Australia's shareholding in the International Monetary Fund (IMF).
OG – SWIFT Oversight Group
OH&S – Occupational Health & Safety.
OIS – Overnight indexed swap, a bilaterally traded, or over-the-counter (OTC), derivative in which one party agrees to pay the other party a fixed interest rate in exchange for receiving the average cash rate recorded over the term of the swap.
OMO – Open Market Operation
OPA – Official Public Account
ORA – Official reserve asset. Australia's official reserve assets comprise foreign currency-denominated assets, gold bullion, Special Drawing Rights and Australia's shareholding in the IMF.
original – An original time series shows the actual movements in the data over time, not seasonally adjusted.
OSF – Officers’ Superannuation Fund
OSSG – Official Sector Steering Group (of FSB)
OTC – over-the-counter
overnight loans – Loans, which are recallable, repayable or renegotiable the next day, usually by 11.00 am.

P

PAIF – Pan Asia Bond Index Fund. A component of the second stage of EMEAP’s Asian Bond Fund initiative (ABF). The PAIF is an exchange-traded fund listed on the Hong Kong Stock Exchange and cross-listed on the Tokyo Stock Exchange. The PAIF tracks the performance of the Markit iBoxx ABF Pan Asia index and invests in domestic currency-denominated government and quasi-government bonds issued in eight of the eleven EMEAP economies (i.e. excluding Australia, Japan and New Zealand).
PAN – Primary account number
PAYE – Pay as you earn
PAYG – Pay as you go
PBS – Permanent Building Societies
PCE – Personal Consumption Expenditure
PDS – Payment Delivery System
PEXA – Property Exchange Australia Ltd
PFC – Pastoral Finance Companies
PFMI – Principles for Financial Market Infrastructures
PGPA Act – Public Governance, Performance and Accountability Act 2013
PIBA – Primary Industry Bank of Australia
PID – Public Interest Disclosure, the public interest disclosure regime established under the PID Act.
PID Act – Public Interest Disclosure Act 2013
Pillar 1 – The New Basel Capital Accord, issued by the Basel Committee on Banking Supervision, aims to improve the flexibility and risk sensitivity of the existing Accord. The New Accord consists of three mutually reinforcing pillars. Pillar 1 sets out the framework for revised minimum capital requirements, building-in rewards for stronger and more accurate risk management.
Pillar 2 – The New Basel Capital Accord, issued by the Basel Committee on Banking Supervision, aims to improve the flexibility and risk sensitivity of the existing Accord. The New Accord consists of three mutually reinforcing pillars. Pillar 2 proposes procedures for supervisory review of an institution's capital adequacy and internal risk assessment process.
Pillar 3 – The New Basel Capital Accord, issued by the Basel Committee on Banking Supervision, aims to improve the flexibility and risk sensitivity of the existing Accord. The New Accord consists of three mutually reinforcing pillars. Pillar 3 recommends requirements aimed at enhancing market discipline through effective disclosure of information to market participants.
PIN – Personal Identification Number
polymer substrate – The polymer (polypropylene) sheeting on which Australian and a range of other countries' banknotes are printed.
POS – Point of sale
PPFs – Purchased payments facilities
PPS – Protected Payments System
PSB – Payments System Board. Created in 1998, within the Reserve Bank of Australia (RBA). The PSB is responsible for determining the RBA's payments system policy so as to best contribute to: controlling risk in the financial system; promoting the efficiency of the payments system; and promoting competition in the market for payment services, consistent with the overall stability of the financial system. Powers to carry out the PSB's policies are vested in the RBA.
PSD2 – Second Payment Services Directive
PSG – Policy Standing Group (CPMI-IOSCO entity)
PSNA – Payment Systems and Netting Act 1998
PSR – Payments System Regulator
Publication Date – Date when the data series was last updated.
PvP – Payment-versus-Payment

Q

QE – Quantitative Easing
QTC – Queensland Treasury Corporation

R

R&D – research and development
RAP – Reconciliation Action Plan
RBA – Reserve Bank of Australia. Australia's central bank, the body corporate successor to the Commonwealth Bank established in 1912; created under its new name by the Reserve Bank Act 1959.
RBA Balance Sheet – The weekly Reserve Bank of Australia balance sheet published each Friday, as at close of business the previous Wednesday.
RBA Repos – An intra-day repurchase agreement between an Exchange settlement account (ESA) holder and the Reserve Bank of Australia that is undertaken unilaterally by the ESA holder through the Austraclear System.
RBAnet – An internet-based desktop banking package developed by the Reserve Bank of Australia (RBA) to facilitate secure exchange of banking information between the RBA and its banking customers.
RBRF – Reserve Bank Reserve Fund. A general reserve which provides for events which are contingent and non-foreseeable, including to cover exceptional losses on RBA's holdings of domestic and foreign securities that cannot be absorbed by its other resources; the RBRF also provides for potential losses from fraud and other non-insured losses. Amounts set aside for this reserve are determined by the Treasurer after consultation with the Board.
RCAP – Regulatory Consistency Assessment Programme
RCG – Regional Consultative Group (of the FSB)
RDP – Research Discussion Paper. One of a series which makes the results of current economic research within the Reserve Bank of Australia (RBA) available to the public. Papers present preliminary results of research to encourage discussion and comment. The contents represent views of the authors and not necessarily those of the RBA.
Real interest rate – The real interest rate refers to the cost of borrowing money (i.e. the nominal interest rate) net of inflation. It takes account of the fact that part of the nominal interest that borrowers pay to lenders represents compensation for anticipated inflation. The remaining ‘real’ component better reflects the economic cost of borrowing and the return to lending.
Red Book – A report entitled 'Payment, clearing and settlement systems in Australia', published by the Committee on Payments and Market Infrastructures (CPMI) in 2011. The report provides an overview of payment systems and financial market infrastructures in Australia.
repo – 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.
Reports on the Observance of Standards and Codes (ROSC) – IMF staff, in conjunction with the relevant authorities of the respective countries, have embarked on a series of Reports on the Observance of Standards and Codes (ROSC). These reports summarise the extent to which countries observe certain internationally recognised standards, focusing primarily on the areas of direct operational concern to the IMF. The World Bank has begun to prepare ROSCs in the areas of corporate governance and accounting and auditing, and is developing a template to begin assessments of insolvency and creditor rights.
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.
Reserve Bank of Australia Bulletin – A quarterly publication by the Reserve Bank of Australia that contains feature articles.
ReSG – Resolution Steering Group (of the FSB)
RFC – Registered Financial Corporation
RFRs – risk-free rates
RHRE – rental, hiring and real estate (sector)
RITS – The Reserve Bank Information and Transfer System (RITS) was established in August 1991 and is operated by the Reserve Bank of Australia. RITS is Australia's Real-Time Gross Settlement (RTGS) system, which plays a central role in the Australian payments clearing and settlement system.
RITS is the means by which Exchange Settlement Accounts are accessed and membership is compulsory for all Australian-licensed banks and participants in the Reserve Bank's domestic market operations.
RM – Risk and Compliance Department
RMBS – Residential Mortgage-backed securities
RMSEs – Root Mean Squared Errors
RP – 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.
RTGS – Real-time gross settlement. A payment system in which processing and settlement take place in real time (continuously).
RTPC – Real-time Payments Committee
RTS – Regulatory Technical Standard
RTWI – Real Australian TWI

S

S&P – Standard and Poor's. An international statistical rating organisation and data provider.
SA – Seasonally adjusted
SAFA – South Australian Government Financing Authority
SAR – Special Administrative Region
SCA – Strong customer authentication
SCAV – Standing Committee on Assessment of Vulnerabilities (of the FSB)
SCCI – Specialist Credit Card Institution
SCSI – Standing Committee on Standards Implementation (of the FSB)
SDR – Special Drawing Right. Used as an international reserve asset to settle transactions between countries and help balance international liquidity. The value of the SDR is calculated by the International Monetary Fund (IMF) on the basis of a weighted basket of five currencies: US dollar; European euro; Chinese renminbi; Japanese yen; and UK pound. The IMF publishes the value of the SDR each day in terms of US dollars and the Reserve Bank of Australia provides an equivalent value in Australian Dollars.
SEACEN – South East Asian Central Banks
Seasonally adjusted – A seasonally adjusted series involves estimating and removing seasonal patterns from the original data.
SEC – Securities and Exchange Commission
securities – A financial instrument which represents a claim over real assets or a future income stream. Such instruments are usually tradeable. Examples of securities include bonds, bills of exchange, promissory notes, certificates of deposit and shares.
securitisation – Asset securitisation is the process of converting a pool of illiquid assets, such as residential mortgages, into tradeable securities.
semis – Semi-government Securities (Australian state and territory government securities)
SEP – Summary of Economic Projections
SEPA – Single Euro Payments Area
settlement – The discharge of obligations arising from fund transfers between two or more parties.
SIFI – Systemically Important Financial Institution
SIFMA – Securities Industry and Financial Markets Association
smart card – Also known as a chip card or IC (integrated circuit) card. A card containing one or more computer chips or integrated circuits for identification, data storage or special-purpose processing used to validate personal identification numbers (PINs), authorise purchases, verify account balances and store personal records.
SOEs – state owned enterprises
SOF – SWIFT Oversight Forum
SOFR – the Secured Overnight Financing Rate
solvency – The capacity of an entity to meet its financial obligations as they fall due. Solvency may be expressed as maintaining positive net-tangible assets.
solvent institutions – Institutions that maintain solvency (i.e. they can meet their financial obligations as they fall due).
SONIA – Sterling Overnight Index Average
SPF – Survey of Professional Forecasters
SRC – Standing Committee on Supervisory and Regulatory Cooperation (of the FSB)
SSBs – Standard Setting Bodies
SSF – Securities settlement facility
SSF Standards – Financial Stability Standards for Securities Settlement Facilities
SSSR – Supply-side structural reform
Statement on Monetary Policy – The Reserve Bank of Australia (RBA) issues a Statement on Monetary Policy four times a year. These statements assess current economic conditions and the prospects for inflation and output growth. These statements have replaced the Semi-Annual Statements on Monetary Policy and the Quarterly Reports on the Economy and Financial Markets, which were previously issued by the RBA.
STMM – Short-term Money Market
Sub-prime mortgage – While there is no precise definition of sub-prime mortgages, in the United States, they are typically loans made to borrowers with impaired credit histories, which might include one or more payment defaults, a previous loan foreclosure, or bankruptcy.
Surplus Exchange Settlement Account balances – Exchange Settlement Account balances, excluding balances that account holders keep to meet their after-hours payments in the direct entry system or the New Payments Platform.
SVR – Standard Variable Rate
SWIFT – Society for Worldwide Interbank Financial Telecommunication. A co-operative organisation that operates a network for the exchange of payment and other financial messages between financial institutions.
SWIFT PDS – SWIFT Payment Delivery System
systemic risk – The risk that the failure of one participant in a payments system, or in financial markets generally, to meet its required obligations when due will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability of financial markets.
systemic risks – Events which may jeopardise financial system stability and cause harm to the real economy. For example, the Y2K problem was regarded as such a risk. They may include the risk that the failure of one participant in a payments system, or in financial markets generally, to meet their required obligations when due, will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems.
systemic stability – The Reserve Bank of Australia has a general and longstanding responsibility for safeguarding the stability of the Australian financial system. In broad terms, financial system stability equates to smoothly functioning financial markets and the absence of financial disturbances that may threaten the health of the economy more broadly. The RBA can use its balance sheet to support a sound financial institution facing liquidity difficulties, should system stability be at risk.

T

TARP – Troubled Asset Relief Program
TASCORP – Tasmanian Public Finance Corporation
TBMA – The Bond Market Association
TCorp – New South Wales Treasury Corporation
TCV – Treasury Corporation of Victoria
TPP – "Trans-Pacific Partnership. The Trans-Pacific Partnership (TPP) is a proposed trade agreement among twelve Pacific Rim countries concerning a variety of matters of economic policy, about which agreement was reached on 5 October 2015 after 7 years of negotiations. The countries involved are Brunei, Chile, New Zealand, Singapore, Australia, Canada, Japan, Malaysia, Mexico, Peru, the United State and Vietnam."
tradables – Tradable items are things whose prices are largely determined on the world market like oil, motor vehicles and clothing. As such, the prices of tradable items are heavily influenced by exchange rate movements. By comparison, non-tradables refers to things that are not readily exported or imported, like medical services, housing and haircuts. As such, their prices are largely determined domestically.
Treasury adjustable rate bonds – Australian Government Securities with an adjustable interest/coupon rate, periodically reset according to movements in the Australian Bank Bill Swap Reference Rate. These securities are no longer issued by the Commonwealth Government.
Treasury fixed-coupon bonds – Australian Government Securities with fixed maturity dates and twice-yearly interest or coupon payments. Coupon payments are fixed for the life of the bond at its first issue.
Treasury indexed bonds – Australian Government Securities with a payment stream that increases by an indexation factor reflecting changes in the rate of inflation. Indexing occurs on the principal value of the investment.
Treasury notes – Australian Government Securities with a short term to maturity, issued at a discount to their face value with the difference (or discount) representing the return on the note. They are used primarily to meet the Government's need for within-year finance.
Trend – A trend series is a seasonally adjusted series that has been further adjusted to remove irregular effects and ‘smooth’ out the series to show the overall ‘trend’ of the data over time. This series is usually provided by the Australian Bureau of Statistics.
TRI – Cash Rate Total Return Index. The TRI measures the performance of an investment earning the cash rate, where interest is reinvested. The Reserve Bank of Australia publishes the TRI, which members of the public can use as a benchmark with a risk-free rate of return.
TSP – Token service provider
TTY – Telephone typewriter
TWI – Trade-weighted index. The TWI is the weighted average value of the Australian dollar in relation to the currencies of Australia's trading partners. The base level was set at 100 in May 1970. The TWI is calculated daily at 4 pm.

U

US$ – US dollar
USD – US dollar. Also referred to as US$.

V

VAR models – Vector Auto Regression models

W

WATC – Western Australian Treasury Corporation
weighted average issue yield – The weighted average of successful yields at auction of Australian Government Securities. Yields are weighted by the share of the total amount sold that is allocated to each successful bidder.
WGBS – Working Group on Banking Supervision (of EMEAP)
WGFM – Working Group on Financial Markets (of EMEAP)
WGPMI – Working Group on Payments and Market Infrastructures (of EMEAP)
WGPSS – Working Group of Payment and Settlement Systems
WHS Act – Work Health and Safety Act 2011
WPI – Wage Price Index
WST – Wholesale Sales Tax. WST was superseded by the Goods and Services Tax introduced on 1 July 2000.

Y

Y2K – Year 2000. The Year 2000 problem was the possibility that financial institutions' computer systems would fail on 1 January 2000 and spark a loss of public confidence in individual institutions or at worst, in the financial system as a whole. In the event, the arrival of Y2K was virtually incident-free.
year-average growth – The rate of change between the year and the previous year, where the year is typically a calendar year or a financial year. For example 'year-average growth 2011/12' means the percentage change between the financial year 2010/11 and the financial year 2011/12. It can also be referred to as 'growth in the year'.
year-ended growth – The rate of change between the period and the equivalent period in the previous year, where the period is typically a month or a quarter. For example 'year-ended growth June 2012' means the percentage change between June 2011 and June 2012. It can also be referred to as 'growth over the year' or 'through-the-year growth'.
yield – The expected rate of return expressed as a percentage of the net outlay or net proceeds of an investment, not of its face value.