Reserve Bank of Australia Annual Report – 2007 Organisational Chart July 2007

The Reserve Bank of Australia comprises the following boards, committees, groups and departments, and a subsidiary organisation:

Reserve Bank Board

The Reserve Bank Board is responsible for monetary and banking policy.

Payments System Board

The Payments System Board is responsible for payments system policy.

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 Audit and Risk Management Committees.

Executive Committee

The Executive Committee provides a forum for communication and discussion among the Governor, Deputy Governor and heads of the main functional areas of the Reserve Bank.

Audit Committee

The Audit Committee is a committee of the Reserve Bank Board; details of its responsibilities can be found in the chapter on ‘Governance’.

Risk Management Committee

The Risk Management Committee is responsible for ensuring that non-policy risks are properly identified and managed across the Reserve Bank. It is chaired by the Deputy Governor.

Business Services Group

Business Services Group comprises three departments:

Banking Department – provides a specialised range of banking and registry services to customers, mainly Australian Government departments and instrumentalities and a number of overseas central banks and official institutions.

Note Issue Department – 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.

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.

Corporate Services Group

Corporate Services Group comprises four departments 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 and handles various staff services such as payroll and superannuation.

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

Personnel Department – provides a range of centralised human resource functions primarily focused on ensuring the Reserve Bank's personnel 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. The department also reports to the Governors directly on certain matters.

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 outside bodies (including the Joint Economic Forecasting Group), maintains contacts with relevant analysts and institutions, undertakes applied research and prepares reports for publication in the Reserve Bank of Australia Bulletin.

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. In addition, it organises a major annual conference and a program of internal seminars and is responsible for administering a comprehensive library service for the Reserve Bank. Also, this year the Department has issued a call for papers to be presented at a research workshop on monetary policy in small open economies in December 2007.

The Reserve Bank maintains four Regional Offices, in Queensland, South Australia, Victoria and Western Australia, and these come under the umbrella of the Economic Group. The Regional Offices analyse economic conditions in regions throughout Australia and conduct liaison with individual firms and agencies in both the private and public sectors. Regional Offices also provide a vehicle for communicating the workings of monetary policy to the wider community and for improving access to the Reserve Bank. Under the direction of an Editorial Committee, Economic Group also administers the monthly Bulletin.

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.

Operations in the Financial Markets Group are monitored and supported by a Dealing Support and Compliance area, which ensures compliance with investment and trading procedures, measures portfolio performance and provides systems and administrative support to the investment and trading operations.

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.

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 and the Financial Stability Forum. 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.

Information Department

Information Department is responsible for disseminating information to the public and media both via a range of publications and the Reserve Bank's website. It is also responsible for the Reserve Bank's document management systems, printing and publishing, and the Museum of Australian Currency Notes.

Secretary's Department

Secretary's Department provides secretariat and co-ordination services for the Governors, the Reserve Bank Board, the Audit Committee, the Payments System Board and the Risk Management Committee. 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.

Risk Management Unit

The Risk Management Unit has been established with the primary objectives of ensuring there are clear responsibilities and a consistent framework for the definition, assessment, monitoring and control of risk throughout the Reserve Bank. The Head of Risk Management reports to the Risk Management Committee.

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.