Week 2 Lecture - Week 2 Regulatory authorities 1302AFE...

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Week 2. Regulatory authorities 1302AFE Money, Banking and Finance Chapter 2 Monday 4 August 2008
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Objectives Describe the origins of the central banking system model Reserve Bank of Australia (RBA) History Primary responsibilities as a central bank Australian Prudential Regulation Authority (APRA) Role of prudential regulation Australian Securities and Investments Commission (ASIC) Role and responsibilities Cooperation with other regulators Explain the role of the Bank of International Settlements (BIS) Differences and similarities between the structure of the Australian financial regulatory system and those of other nations.
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The Origins and Role of Central Banking Authorities Origins in the 17 th century The world’s oldest central bank is Sweden’s Riksbank (1668) followed by the Bank of England (1694) A central bank often regulates a nation’s money supply and financial institutions. The central bank aims to maintain a stable economic environment and effective payments system.
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Typical Functions of Central Banks Functions performed by central banks include: Developing and implementing monetary policy Issuing currency Providing banking services for the government Overseeing the operations of the financial system Facilitating the payments system.
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Australia’s Monetary Authorities Before 1900 the central banking role was less defined After Federation in 1901, the Commonwealth Bank of Australia, established in 1910 In 1959 the Reserve Bank of Australia was established to take over the role. The role of monetary authority is now split among three independent agencies: The Reserve Bank of Australia (RBA) The Australian Prudential Regulation Authority (APRA) The Australian Securities and Investment Commission (ASIC).
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History of the RBA The History of the RBA is characterised by several important events: The establishment of the Commonwealth Bank of Australia (CBA). The separation of the CBA’s commercial operations and central banking duties in the 1950s.
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Week 2 Lecture - Week 2 Regulatory authorities 1302AFE...

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