The Central Bank Of Australia

1071 Words Nov 29th, 2015 5 Pages
The Central Bank

The Reserve Bank of Australia (RBA) located in Sidney, South Wales, Australia, is the Central Bank of Australia. All the responsibility that this bank has over the country comes from the Reserve Bank Act 1959. The duty to contribute for the stability of their currency, maintain full employment and the economic prosperity with the welfare of Australian people. Using strategies as setting cash rate to settle the medium term of inflation target, managing to control a strong financial system and productive payment system, and last but not least issuing bank’s notes.

On the other hand, the Central Bank delivers banking services to overseas central banks and others institutions. Also managed the gold and the exchange reserves from the country. Today, the Central Bank runs by the voice of Glenn Stevens, Governor, with an interest rate target of 2%.

Bank Regulation

Australia has two mainly agencies that regulates all the financial institutions for a better efficiency, extensive and detailed regulation are split between the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). On the other hand, the Reserve Bank of Australia has an important role in the involvement.

APRA takes care for the licensing and prudential supervision of the Authorized Deposit taking Institutions (ADIs) meaning banks, credit unions, building societies, friendly societies and member of credit cards, purchaser payment…

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