Reserve Bank of Australia Annual Report – 2010 Organisational Chart August 2010

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.

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. It is chaired by Jillian Broadbent, 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 Donald McGauchie, a non-executive member of the Board.

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.

Banking and Payments Group

Banking and Payments Group comprises two 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.

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 three departments and a 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 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.

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 Chief Financial Officer.

Currency Group

Currency Group is responsible for banknote issue. The Assistant Governor (Currency) is Chairman of Note Printing Australia Limited and Securency International Pty Ltd.

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 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. 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. Under the direction of the Publications Committee, Economic Group also administers the quarterly 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.

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.

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 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, archives 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 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.