This is the value, as at the relevant date, of inward risk transfers that reallocated risk to the country of the immediate borrower from the country of ultimate risk as a result of guarantees, collateral, and credit derivatives which are part of the banking book. This includes risk-transfers between different economic sectors in the same country.There are four potential forms of risk reallocation:i. Lending to a non-resident that is guaranteed by a non-resident third party. In this case both the outward risk transfer from the original borrower and the risk transfer to the guarantor have to be reported.ii. Lending to a non-resident that is guaranteed by an Australian resident third party. In  this  case  both  the  outward  risk  transfer  from  the  original  non-resident borrower has to be reported as well as the inward risk transfer to Australia.iii. Lending to a resident that is guaranteed by a non-resident third party. In this case, report the outward risk transfer from Australia as well as the inward risk transfer to the non-resident guarantor.iv. Lending to a non-resident where the exposure is extinguished by receiving a cash collateral. In  this  case  only  the  outward  risk  transfer  from  the  original  non-resident borrower has to be reported (but no inward risk transfer to Australia). 

The information on the reallocation of claims should be reported as net risk transfers, i.e. the difference of reallocated claims that increase the exposure (inward risk transfers) and those, which reduce the exposure (outward risk transfers) vis-à-vis a given country. All outward and inward risk transfers should add up to the same total.