Reserve Bank of Australia Annual Report – 2012 Organisational Chart | September 2012

Governance Structure

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 monetary and banking 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.

Governor and Deputy Governor

The Governor and Deputy Governor are the Chairman and Deputy Chairman of the Reserve Bank Board, respectively. The Governor, who is the chief executive officer of the Reserve Bank, is also Chairman of the Payments System Board. The Deputy Governor is Chairman of the Risk Management Committee.

Audit Committee

The Audit Committee is a committee of the Reserve Bank Board. It is chaired by Jillian Broadbent AO, 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 and it is chaired by Roger Corbett AO, a non-executive member of the Board.

Executive Committee

The Executive Committee is the key decision-making committee of the Bank for matters of an administrative and management nature. Its role is to assist and support the Governor in fulfilling his responsibilities under the Reserve Bank Act 1959 to manage the Bank. It 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

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

Banking and Payments Group

Banking and Payments Group comprises two departments:

Banking Department – 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.

Corporate Services Group

Corporate Services Group comprises three departments and one unit, which provide services to other parts of the Reserve Bank:

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

Financial Administration Department – prepares the Reserve Bank's financial and management accounts.

Staff Services Unit – handles various staff services such as payroll, superannuation and travel.

Systems and Technology Department – responsible for the planning, development and management of the Reserve Bank's computer and communications systems.

Currency Group

Currency Group is responsible for banknote issue. The Assistant Governor (Currency) is Chairman of Note Printing Australia Limited.

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.

Economic Group

Economic Group is responsible for analysis of economic trends, both domestic and overseas, 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.

The Reserve Bank maintains four State Offices, covering Queensland; South Australia and the Northern Territory; Victoria and Tasmania; and Western Australia. These State Offices come under the umbrella of the Economic Group. The State Offices analyse economic conditions in regions throughout Australia and conduct liaison with individual firms and agencies in both the private and public sectors. New South Wales and the Australian Capital Territory are covered by Head Office. State Offices also 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 also has an office in Beijing, China that is responsible for monitoring local economic and financial developments as well as maintaining relationships with government and private entities.

Under the direction of the Publications Committee, Economic Group also administers the preparation of the quarterly Bulletin, which includes articles on applied research and recent economic and financial developments.

Financial Markets Group

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.

The Reserve Bank's Representative Offices in London and New York also come under the umbrella of the Financial Markets Group. These offices are mainly responsible for implementing the Reserve Bank's policies in relation to foreign exchange operations and reserves management in their respective time zones. They also liaise with financial market participants and other central banks in their local markets. The European Office in London also maintains liaison with the Bank for International Settlements and the Organisation for Economic Co-operation and Development.

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

Financial System Group

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 Payment and Settlement Systems (CPSS).

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

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.

Human Resources

Human Resources 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 preparing and publishing Bank information via a range of publications and the Reserve Bank's website. It also handles enquiries from the public and media. Separately, Information Department is responsible for the Bank's document management systems, archives and the Museum of Australian Currency Notes.

Risk Management Unit

Risk Management Unit ensures there are clear responsibilities and a consistent framework for the definition, assessment, monitoring and control of risk throughout the Reserve Bank. The Unit also monitors the Reserve Bank's operations in financial markets, ensuring compliance with investment and trading procedures, and accurate measurement of portfolio performance. The Head of Risk Management reports to the Risk Management Committee and to the Deputy Governor.

Secretary's Department

Secretary's Department provides secretariat and co-ordination services for the Governors, the Reserve Bank Board and its Audit and Remuneration Committees, the Payments System Board, and the Bank's Executive and Risk Management Committees. In addition, it provides legal services to the Reserve Bank through the General Counsel, and co-ordinates a range of contacts with Government, the Parliament, other central banks and international organisations, including arranging 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 Committee.