Reserve Bank of Australia

DEFINITION of 'Reserve Bank of Australia'

The Reserve Bank of Australia is Australia's central bank and its main responsibility is to be involved in Australia's monetary policy. In addition, the Reserve Bank of Australia is also involved in banking and registry services for federal agencies and some international central banks. The Reserve Bank of Australia is tasked with contributing to three objectives: a) The stability of Australia's currency, b) Maintenance of full employment in Australia and c) The economic prosperity of the people of Australia. The bank was established in 1960 and is entirely owned by the Australian government.

BREAKING DOWN 'Reserve Bank of Australia'

The Reserve Bank of Australia was established by Australia's parliament in the Reserve Bank Act of 1959. The act effectively replaced the Commonwealth Bank of Australia, which had been Australia's central bank since 1911. The Reserve Bank of Australia is currently headed by Governor of the Reserve Bank, Glenn Stevens, who assumed office in 2006.

RELATED TERMS
  1. National Australia Bank - NAB

    One of the major banking entities in Australia. The National ...
  2. NAB Business Confidence Index

    A key measure of business confidence in Australia, published ...
  3. Reservable Deposit

    A bank deposit subject to reserve requirements. Reserve requirements ...
  4. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
  5. Reserve City Bank

    A bank that is found in any city that also has a Federal Reserve ...
  6. International Reserves

    Any kind of reserve funds that can be passed between the central ...
Related Articles
  1. Forex Education

    The Australian Dollar: What Every Forex Trader Needs To Know

    With its unique relationship to the Japanese yen, the AUD is an important currency for FX traders.
  2. Mutual Funds & ETFs

    The Top 3 ETFs For Investing in Australia

    Learn about some of the best performing exchange-traded funds that investors use to obtain exposure to stock investments in Australia.
  3. Retirement

    Retire In Australia With $200,000 Of Savings?

    Maybe. Thanks to a strong U.S. dollar, Australia has become more affordable, at least for Americans.
  4. Investing News

    Australia’s Business and Employment at 2008 Levels

    National Australia Bank reports improved business sentiment and employment conditions indicating the country has weathered the bleak global outlook.
  5. Stock Analysis

    Make A Play For The Land Down Under

    Australia is often overlooked by investors. However, the nation’s commodity sector is the envy of the world. That key contributor is about to get even more powerful given some recent policy changes
  6. Stock Analysis

    The Next Hottest Shale Play Is Down Under

    The future of shale gas could be located in the “land down under.” Featuring vast unconventional reserves, a stable government and already in place midstream infrastructure, analyst’s peg Australia ...
  7. Stock Analysis

    Australia ETFs: 9 Ways To Play

    As the economies of the Europe, the United States and Japan have struggled to overcome a variety of challenges in recent years, investors have come to question the conventional wisdom that developed ...
  8. Personal Finance

    The Banking System: Federal Reserve System

    ByStephen D. Simpson, CFA The central bank of the United States is the Federal Reserve System. The Federal Reserve System came into being in 1913, after the passage of the Federal Reserve Act ...
  9. Stock Analysis

    Apache Corp. In Australia

    Apache Corp. has an ongoing investment program in Australia, and has a large inventory of projects in both the exploration and development stages.
  10. Investing News

    Australia Monthly Consumer Confidence index Hits 7-month low

    A report compiled by the Westpac-Melbourne Institute says the monthly consumer sentiment index fell by 4% from 99.06 in March to 95.1 in April.
RELATED FAQS
  1. Is Australia a developed country?

    Identify the criteria used to determine developed country status, and understand why Australia is considered one of the world's ... Read Answer >>
  2. Who determines the reserve ratio?

    Understand what the Federal Reserve is and what it regulates in the U.S. economy. Learn about the reserve ratio and how the ... Read Answer >>
  3. What happens if the Federal Reserve lowers the reserve ratio?

    Learn about the Federal Reserve's monetary policy and the tools it uses to control it. Understand what happens if the Federal ... Read Answer >>
  4. What developed countries have the greatest exposure to metals and mining?

    Learn about the three developed countries with the largest exposure to the metals and mining sector: Canada, Australia and ... Read Answer >>
  5. What is the structure of the U.S. Federal Reserve Bank?

    Wonder how the U.S. Federal Bank began and how it works today? Learn how this complex system is structured and how it works ... Read Answer >>
  6. Which nations' economies have reserve ratios?

    Learn more about the inconsistent imposition of depository banking reserve ratios, and why the United States stands alone ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center