Governance

The Reserve Bank of Australia (RBA) is an independent central bank with responsibility for monetary, financial system and payments system policies, and other financial matters. The RBA has two policy-making boards: the Monetary Policy Board, which has responsibility for monetary policy and financial stability; and the Payments System Board, which has responsibility for matters relating to payments system policy. A third board – the Governance Board – is responsible for governing the RBA, including overseeing its management and organisational affairs.

The Governance Board is the accountable authority of the RBA under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This imposes particular responsibilities on the Governance Board with respect to matters such as the proper use of the RBA’s resources and the system of risk oversight and risk management.

The RBA is managed, day-to-day, by the Governor. The Governor does this with the support of the Deputy Governor, Chief Operating Officer and Assistant Governors (who collectively form the RBA’s Executive Committee).

The Governance Board has an Audit and Risk Committee. The primary objectives of the Audit and Risk Committee are to report to the Board on matters relevant to the fulfilment of the RBA’s statutory financial reporting and other obligations in terms of the Reserve Bank Act and the PGPA Act, and on matters relevant to the fulfilment of the Board’s obligations for overseeing and managing risk. The Committee assists the Board in fulfilling its obligations relating to financial reporting, risk management and fraud control, and regulatory compliance.

Following appointment to one of the RBA’s three boards, each member is required under the Reserve Bank Act to sign a declaration to maintain secrecy in relation to the affairs of the particular board and the RBA. Further, by law, members must comply with the general duties of officials of Commonwealth entities, as set out in the PGPA Act. Over and above these requirements, members of each board adopt a Code of Conduct in recognition of their responsibility for maintaining a reputation for integrity and propriety on the part of the specific board and the RBA.

For more information, see the Governance Structure.