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Glossary

Account holder A person who possesses at least one product (savings, investments, loans, or insurance)
Assets to staff ratio Total assets per full time equivalent staff member
Australian Competition and Consumer Commission (ACCC) An independent Commonwealth statutory authority that administers the Competition and Consumer Act 2010 (Cth) and promotes competition and fair trade in the marketplace to benefit consumers, business and the community
Australian Credit Licence (ACL) Authorisation to provide services as a credit provider in Australia. National legislation defines credit activity, including activity related to credit contracts, consumer leases, related mortgages and guarantees, and credit assistance services.
Authorised deposit-taking institution (ADI) Corporations authorised under the Banking Act 1959 (Cth) including banks, building societies and credit unions that must meet certain criteria
Australian Financial Services Licence (AFSL) Authorisation to offer and provide consumers with specified financial products and services in accordance with ASIC compliance standards
Australian Prudential Regulation Authority (APRA) An independent Commonwealth statutory authority that administers the Banking Act 1959 (Cth) and sets prudential requirements for ADIs, including monitoring their lending activities
Australian Securities and Investments Commission
(ASIC)
An independent Commonwealth statutory authority that protects consumers, investors and creditors by licensing and monitoring financial services organisations and their representatives. ASIC regulates mutual ADIs as companies under the Corporations Act 2001 (Cth).
Australian Transaction Reports and Analysis Centre (AUSTRAC) An independent Commonwealth statutory authority that oversees Australian businesses’ compliance with their requirements under the Anti‑Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and the Financial Transaction Reports Act 1988 (Cth)
Average customer value Total loans and total deposits held per customer
Capital adequacy ratio The percentage of a bank’s adjusted capital compared to its risk weighted assets, as per Prudential Standard APS110
Cost to income ratio The percentage relationship between operating expenses and effective gross income
Credit quality The percentage of delinquent loans 30 days or more in arrears to the total loan portfolio
CUFSS The Australian mutual banking industry self-funded and operated ‘emergency’ liquidity support scheme. It is certified by APRA under section 11CB of the Banking Act 1959 (Cth).
Cuscal An ADI regulated by APRA, which provides payment services to the majority of Australia’s mutual ADIs
Customer An account holder. Customers can also hold a member share.
Customer benefit Monetary benefit returned to customers in the form of better interest rates and fees. Canstar Cannex compared pricing on our deposits, loans and transactions at 30 June 2014 with the average pricing offered by the four major banks.
Customer retention rate The percentage of customers retained over the past 12 months
Customer retention rate The percentage of customers retained over the past 12 months
Global Reporting Initiative
(GRI G4)
The current version of global voluntary guidelines for companies to report their sustainability performance and workplace practices
Materiality Economic, social and environmental topics that cross a threshold in affecting the ability to meet the needs of the present without compromising the needs of future generations. Material topics affect the longevity of an organisation and its stakeholders.
Net profit after tax The amount of profit achieved after required taxation has been paid
Net Promoter Score A measure of customer loyalty and the likelihood of a customer recommending an organisation to others. It is calculated as the percentage of promoters less the percentage of detractors.
Office of the Australian Information Commissioner An independent Commonwealth statutory authority that oversees Australian businesses’ compliance with the Privacy Act 1988 (Cth) and the Freedom of Information Act 1982 (Cth)
Reserves to assets ratio The ratio of bank liquid reserves to bank assets
Return on average assets The profit a company generates for each dollar of assets it owns
Return on equity The profit a company generates for each dollar of equity it invests
Share of wallet The percentage of customers’ total banking value
Sustainable development Systematic and balanced business strategies that satisfy the economic, social and environmental performance expectations of stakeholders, while protecting, sustaining and enhancing the financial, human and natural resources needed for future development
Triple bottom line (TBL) An accounting framework with three dimensions: social, environmental and financial

ABBREVIATIONS

ACCC Australian Competition and Consumer Commission
ACL Australian credit licence
ADI Authorised deposit-taking institution
AFSL Australian financial services licence
APRA Australian Prudential Regulation Authority
ASIC Australian Securities and Investment Commission
ATO Australian Taxation Office
AUSTRAC Australian Transaction Reports and Analysis Centre
FTE Full time equivalent
GRI G4 Global Reporting Initiative version 4
km Kilometres
kWh Kilowatt hours
MJ Megajoules
RBA Reserve Bank of Australia
TBL Triple bottom line