Organisational Structure

Governance Structure

Graphical Representation of the Governance Structure 63KB

The activities of the Reserve Bank of Australia are overseen by the following boards and committees.

Reserve Bank Board

The Reserve Bank Board is responsible for the Bank's monetary and banking policy, and the Bank's policy on all other matters, except for its payments system policy. The Governor, who is the chief executive officer of the Reserve Bank, is Chairman of the Reserve Bank Board. The Deputy Governor is Deputy Chairman.

Payments System Board

The Payments System Board is responsible for payments system policy. The Governor is also Chairman of the Payments System Board. The Assistant Governor (Financial System) is Deputy Chairman.

Audit Committee

The Audit Committee is a committee of the Reserve Bank Board. Its membership comprises two non-executive members of the Reserve Bank Board and two external members. The Committee is chaired by Kathryn Fagg, a non-executive member of the Reserve Bank Board.

Remuneration Committee

The Remuneration Committee is a committee of the Reserve Bank Board. Its membership is drawn from the non-executive members of the Reserve Bank Board.

Executive Committee

The Executive Committee is the key decision-making committee of the Bank for matters of an administrative and management nature that have strategic, Bank-wide or external significance. Its role is to assist and support the Governor in fulfilling his responsibilities under the Reserve Bank Act 1959 to manage the Bank. The Committee is chaired by the Governor.

Risk Management Committee

The Risk Management Committee is responsible for ensuring that non-policy risks are properly identified and managed across the Reserve Bank in accordance with the Bank's Risk Management Policy. It is chaired by the Deputy Governor.

Operational Structure

Graphical Representation of the Operational Structure 78KB

In working to fulfil its role, the Reserve Bank is organised along the following operational lines.

Business Services Group

Assistant Governor (Business Services): Lindsay Boulton

Business Services Group comprises three departments:

Banking Department – located in the Sydney Head Office and Canberra Branch, provides a range of banking services to Australian Government departments and other government instrumentalities as well as a number of overseas central banks and official institutions.

Payments Settlements Department – responsible for the settlement of high-value payments and interbank obligations arising from the conduct of Exchange Settlement Accounts and the Reserve Bank's own trading activities, as well as the operations of RITS (Reserve Bank Information and Transfer System), Australia's real-time gross settlement (RTGS) system. Services are also provided for the clearing and settlement of low-value payments, such as those arising from cheque and direct entry transactions.

Note Issue Department is responsible for research into and development of new banknote designs and security features, and the supply of good quality/authentic banknotes to meet the community's demand.

Corporate Services Group

Assistant Governor (Corporate Services): Susan Woods

Corporate Services Group comprises two departments that provide support functions for the Reserve Bank:

Facilities Management Department – responsible for the Reserve Bank's properties, security management and a range of facility services.

Information Technology Department – responsible for transforming and developing the core IT functions that support the Reserve Bank's policy, operational and corporate objectives.

Economic Group

Assistant Governor (Economic): Luci Ellis

Economic Group is responsible for analysis of economic trends, forecasting and research relevant to the framing of monetary policy. It consists of two departments:

Economic Analysis Department – monitors and forecasts trends in the international and domestic economies, provides regular advice on these developments and monetary policy to the Governors and the Board, contributes to various external bodies, maintains contacts with relevant analysts and institutions, undertakes applied research and prepares reports for publication.

Economic Research Department – undertakes longer-term research into issues relevant to monetary policy formulation and the operation of financial markets. Results are published in the Research Discussion Paper series. The Department organises a major annual conference, as well as an annual Research Workshop for which a call for papers is issued. In addition, it organises a program of internal seminars, hosts a number of invited academic visitors each year and is responsible for administering a comprehensive library service for the Reserve Bank.

Economic Group operates out of the Head Office and four State Offices, covering Queensland, South Australia and the Northern Territory, Victoria and Tasmania, and Western Australia, which analyse economic conditions throughout Australia. The State Offices also conduct liaison with individual entities in both the private and public sectors and provide a vehicle for communicating the workings of monetary policy to the wider community and for improving access to the Reserve Bank.

The Reserve Bank has an office in Beijing, which is responsible for monitoring economic and financial developments in China as well as maintaining relationships with local government and private entities.

Financial Markets Group

Assistant Governor (Financial Markets): Christopher Kent

Financial Markets Group is responsible for implementing the Reserve Bank's operations in domestic and foreign exchange markets, monitoring developments in financial markets and co-ordinating the Reserve Bank's relationships with international institutions. The Group is divided into two departments:

Domestic Markets Department – responsible for the Reserve Bank's operations in the domestic money and bond markets. The Department also analyses developments in domestic financial markets, including the cost and availability of finance through financial intermediaries and capital markets, and provides regular advice to the Governors and the Board on these issues.

International Department – responsible for the Reserve Bank's foreign exchange operations, the investment of international reserve holdings of gold and foreign exchange, and the provision of regular advice on developments in international financial markets to the Governors and the Board. The Department is also responsible for maintaining the Reserve Bank's relations with major international institutions.

Financial Markets Group also operates out of offices in London and New York. The European Representative Office in London maintains liaison with central banks and other institutions and authorities in Europe, including the Bank for International Settlements and the Organisation for Economic Co-operation and Development. The New York Representative Office performs similar functions in respect of North America. Both of these offices monitor economic and financial developments in the local markets, and are responsible for the Bank's foreign exchange operations and investment of international reserves in their respective time zones.

The Bank's investment and trading operations are supported by the Financial Markets Technology Services area.

Financial System Group

Assistant Governor (Financial System): Michele Bullock

Financial System Group supports the Reserve Bank's role in payments system regulation and its broad responsibilities for financial system stability. It consists of:

Payments Policy Department – responsible for developing and implementing the Reserve Bank's payments system policy. It provides analysis and advice to the Payments System Board on improving the safety and efficiency of the payments system. The Department is also responsible for oversight of Australia's clearing and settlement facilities and represents the Bank on the international Committee on Payments and Market Infrastructures (CPMI).

Financial Stability Department – analyses the implications for financial system stability of developments in the macroeconomy, financial markets and the financial sector more generally, including areas such as patterns of financial intermediation, financial products and risk management techniques. The Department provides advice on these issues to the Governors and the Board and supports the Reserve Bank's representation on bodies such as the Council of Financial Regulators, the Financial Stability Board and the Basel Committee on Banking Supervision. It is responsible for producing the Financial Stability Review.

Other Departments

Audit Department is responsible for conducting independent appraisals of the Reserve Bank's activities, functions and operations to ensure that an adequate framework of internal controls has been established and is operating effectively. The Head of Audit reports to the Chair of the Audit Committee.

Finance Department

Finance Department prepares the Reserve Bank's financial and management accounts and provides various staff services such as payroll and travel. Finance also manages the Bank's Enterprise Portfolio Management Office.

Human Resources Department

Human Resources Department provides a range of centralised human resource functions primarily focused on ensuring the Reserve Bank's human resources policies and practices are tailored to attract and retain high quality staff. These include policies covering employment conditions, remuneration, staff training and development, equity and diversity and occupational health and safety.

Information Department

Information Department is responsible for the Bank's records management system, information governance, the archives and facilitating public access to Bank records. It also manages the Reserve Bank of Australia Museum and a program of public education.

Risk and Compliance Department

The Risk and Compliance Department supports the consistent and effective application of the Bank's framework for managing risk, both at the enterprise level and for individual business units across the Bank. It assists departments to identify, understand and manage their compliance obligations. It also monitors and reports on portfolio risks and compliance with respect to the Bank's operations in financial markets. The Head of Risk and Compliance reports to the Risk Management Committee and to the Deputy Governor.

Secretary's Department

Secretary's Department provides secretariat and coordination services and advice on governance matters for the Governors, the Reserve Bank Board and its Audit and Remuneration Committees, the Payments System Board, and the Bank's Executive Committee. Secretary's Department is responsible for preparing and publishing Reserve Bank information and maintaining the Bank's websites. The department handles enquiries from the public and media. In addition, it provides legal services to the Reserve Bank through the General Counsel, coordinates a range of contacts with Government, the Parliament, other central banks and international organisations, and arranges programs for visitors.

Note Printing Australia Limited

Note Printing Australia Limited (NPA) is a separately incorporated, wholly owned subsidiary of the Reserve Bank of Australia. It is responsible for printing currency notes, passports and other security documents for Australia and for export, and conducting research and development in these areas. NPA reports to its own Board, which has an Audit and Risk Committee.