Report on Australian Financial Institutions

Running head: ECONOMICS 1
BAFN205
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1ECONOMICS
Report on Australian Financial Institutions
AS per the classification of the reserve bank of Australia, there are basically three types of
financial institutions and they include among others; the funds and insurers managers, Non
ADA financial institutions and the authorized Deposit taking institutions. The authorized
deposit taking institutions (ADIs) are under the 1959 banking act as explained in the
prudential regulation authority of Australia. The authorized deposit taking institutions just
like banks are subject to similar standards of prudential. Example of authorized deposits
taking institutions includes credit unions, Building societies and Banks. All of which are
under the APRA supervision. The authorized deposit taking instructions offer various
services that are financial in nature in the various economic sectors like insurance and
management of funds , they also provides payment services to members, housing or person
loan and others(Viney &Phillips,2015).
The fund managers and insurers comprises of friendly societies, common funds, trusts of
cash management, public unit trusts , health insurance organizations or companies,
superannuation and approved deposit funds, Life insurance organizations and General
insurance companies. The institutions under the insurers and fund managers are supervised
by the APRA, ASIC and state and authorities. The insurance and fund managers offer super
annulations products, provide disability, life and accident insurance, Basing on fiduciary
basis for example, life insurance companies are able to manage assets which are most put in
debt and equity secures. Equities, Government securities, deposits and loans are where
most assets are commonly invested by General insurance.
On top of that, General insurance offers employer's liability, property and motor vehicles
insurance (Viney &Phillips, 2015). Employer’s contributions are accepted and at the same

2ECONOMICS
time managed by the superannuation funds. The trustees control the funds and in most
cases utilize fund managers that are very professional. Public trusts engage in the pooling of
the investor's capital into various or given kinds of assets like oversee securities, mortgages,
equities, cash, property and investments in money markets. The cash management trustees
are under the governance of the overall trust deed
The non -ADI financial institutions comprises of the Securitisers, money market
corporations like the broker dealers and the Finance companies like the pastoral finance
companies and the general financiers all of which are under the supervision of the ASIC.
The non ADA financial institutions offer credit enhanced secures, offer loans to various
small, medium and large scale enterprises and households. They also lend to Government
agencies and large corporations. The above corporations usually undertake their overall
operations in the whole sale markets. Other services offered by the Non -ADI financial
institutions include; borrowing to government agencies and big corporations. Hence forth
the above are main types of financial institutions as classified by the Reserve Bank of
Australia.
Report on the performance of a major bank in Australia
The major bank to be focused on is the common wealth bank of Australia. The common
wealth bank of Australia has various ventures in the United Kingdom, United States, Asia
and New Zealand. The bank offers a number of financial facilities and services such as
broking services, investment, insurance, superannuation funds, management, institution
banking, business, retail and other forms of financial services. In the period of April 2018,
the common wealth bank of Australia registered a big fall in its overall equities or shares. It
is important to note that in the year 2014, there was failure to comply with the introduced