Reserve Bank of Australia

AAA

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.

INVESTOPEDIA EXPLAINS '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. Foreign Investment Funds (FIF) ...

    A tariff imposed on Australian residents by their government ...
  3. South African Reserve Bank

    The South African Reserve Bank is the reserve bank of the Republic ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Bankmail

    An agreement made between a company planning a takeover and a ...
  6. Central Bank

    The entity responsible for overseeing the monetary system for ...
Related Articles
  1. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  2. How The U.S. Government Formulates Monetary ...
    Personal Finance

    How The U.S. Government Formulates Monetary ...

  3. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  4. The Currency Board: Understanding The ...
    Personal Finance

    The Currency Board: Understanding The ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center