2005 Self-assessment of the Reserve Bank Information and Transfer System Responsibility D

The central bank, in promoting payment system safety and efficiency through the Core Principles, should cooperate with other central banks and with any other relevant domestic or foreign authorities.

D.1 Assessment of Compliance

The Reserve Bank complies with this principle.

The Reserve Bank maintains close relations with other central banks and participates in a number of international fora to promote the stability of financial markets and sound and legally robust payment systems. The Reserve Bank was a member of the Committee on Payment and Settlement Systems Task Force on Payment Systems Principles and Practices that drafted the Core Principles.

Domestically, the Reserve Bank cooperates with other regulators which have interests in various aspects of the payments system. The Reserve Bank has agreed a Memorandum of Understanding with the ACCC to ensure a coordinated policy approach to promoting competition in the market for payment services. A Memorandum of Understanding between the ASIC and the Reserve Bank sets out a framework for cooperation between ASIC and the Reserve Bank in respect of regulatory responsibilities for clearing and settlement facilities. The Reserve Bank is responsible for the financial stability aspects of these facilities (refer also to section 0.2.2).

The Reserve Bank also cooperates with Australia's prudential regulator, APRA. APRA is responsible for supervision of financial institutions and the Reserve Bank is responsible for regulation of the payments system in which they participate and systemic stability more generally; both institutions meet regularly to discuss issues that bear upon these responsibilities. APRA requires prospective authorised deposit-taking institutions to obtain an ESA at the Reserve Bank as a condition of authorisation under the Banking Act 1959.