Reserve Bank of Australia Annual Report – 2012 Financial Statements Note 11 – Contingent Liabilities and Other Items Not Included in the Balance Sheet

The RBA has a contingent liability, amounting to $53.4 million at 30 June 2012 ($53.5 million at 30 June 2011), in respect of the uncalled portion of its shares held in the BIS.

In the course of providing services to its customers, the RBA provides performance guarantees to third parties in relation to customer activities. Such exposure is not material and has not given rise to losses in the past.

The RBA carries its own insurance risks except where external insurance cover is considered to be more costeffective or required by legislation.

As outlined in Note 1, the Bank has accounted for, or provided for, the costs associated with the charges laid against NPA and Securency during 2011. In light of uncertainties, it is not possible to make reliable estimates of all of the potential costs associated with these claims or potential claims against these companies at the date of preparing these accounts.