Contingent liabilities on bank funding
Estimates of the value of various contingent liabilities of the Australian Government connected to its props for banks and insurance companies rated a mention in the budget papers last night.Treasury estimated that, as at 31 January 2011, deposits eligible for coverage under the Financial Claims Scheme stood at approximately A$732 billion.The guarantee of state and territory borrowing covers $50.8 billion in debt.The Guarantee Scheme for Large Deposits and Wholesale Funding, which also benefits banks, covered $129 billion in liabilities, of which $3.9 billion was large deposits, Treasury said.