FREQUENTLY ASKED QUESTIONS ABOUT THE ROLE OF THE RBA

1. What is the Reserve Bank of Australia and who owns it?
2. How does the RBA set interest rates?
3. Who is on the Reserve Bank Board and how are they appointed?
4. Can I open a bank account with the RBA?
5. What if I have a concern or complaint about my bank or similar financial institution?

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1. What is the Reserve Bank of Australia and who owns it?

The Reserve Bank of Australia (RBA) is Australia's central bank. Its role is set out in the Reserve Bank Act 1959. The Bank's main responsibility is monetary policy. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system. The Bank is wholly owned by the Australian Government, but is not a government department. For more information see about the RBA.

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2. How does the RBA set interest rates?

The Reserve Bank Board makes monetary policy decisions in terms of the cash rate – the interest rate on overnight loans in the money market. These decisions affect a range of other market and institutional interest rates. For details see about monetary policy.

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3. Who is on the Reserve Bank Board and how are they appointed?

The Reserve Bank Board has up to nine members. Three of these are ex-officio: the Reserve Bank Governor (Chairman), the Deputy Governor (Deputy Chairman) and the Secretary to The Treasury. The Governor and Deputy Governor are appointed for terms of up to seven (7) years. The other six (non-executive) members are appointed for terms of up to five (5) years. Board members are appointed by the Treasurer. Use this link, Reserve Bank Board, for more information, including details on the current members of the Board.

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4. Can I open a bank account with the RBA?

The RBA is not a commercial bank and so does not provide banking facilities to the general public. It does, however, provide banking services to some government, commercial bank and other clients.

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5. What if I have a concern or complaint about my bank or similar financial institution?

The RBA does not supervise the prudential soundness of banks or other financial institutions, though it does have a role in maintaining the stability of the financial system as a whole.

The Australian Prudential Regulation Authority (APRA) is responsible for prudential supervision of financial institutions.

The RBA also does not handle consumer complaints about financial institutions. Such matters should be addressed to the Australian Securities and Investments Commission (ASIC) or the Banking and Financial Services Ombudsman.