RBA和APRA描述

FIN1103FinancialMarketS62011StudentName:MaShengcheStudentID:0061013934DueDate:11November2011Wordscount:1493wordsI.FunctionsoftheReserveBankofAustralia(RBA)AsAustralia’scentralbank,theReserveBankofAustraliahastheresponsibilityofprovidingservicestotheGovernmentaswellasotherbanksandinstitutions.Itisoneofthreemainfinancialregulatorsthataimtopromotethefinancialsystem’sstability,efficiencyandreliably.TheReserveBankAct1959describedthattheRBAhastwoboards.FunctionofReserveBankBoardistoestablishandimplementsmonetarypolicytomaintainastablefinancialsystemandissuesthenation’scurrency.FunctionofPaymentSystemBoardistoregulatethepaymentsysteminordertocontrolrisk,promoteefficiencyandcompetition.TheRBAhasthefunctiontopromulgatepropermonetarypolicy,withtheobjectivesofstabilizingthecurrency,employmentrateandeconomicprosperity.Itsmonetarypolicyestablishesthroughadjustingcashrate.Cashratedeterminestheinterestrateamongcommercialbanks.Inaddition,itwillinfluenceinflationrate,aswellastheeconomicvitality(theRBA,2011).Agivenexampleisin1997,AustralianDollarfellrapidly.TheRBAinterferedinallaspectsoffinancialmarkettorestrainthefalling.TheysoldreservedforeigncurrencyandboughtAustralianDollar.Inthemeanwhile,RBAstoppedbuyingforeigncurrencyfortheGovernmentofAustraliawiththepurposeofcounteractingtheinfluencesofinterferences.TheexchangerateofAustralianDollarfinallywentup.Changesinthecashratewillaffectthesavingsandinvestmentbehaviorofindividualsandbusinesses.Allofthatwilladjusttheinflationratetoanexpectedone.Forinflationratechanges,priceofgoodsandGDPwillfollowtochange.Asfarasthepaymentsystem,theRBAisresponsibleforcontrollingrisk,promotingtheefficiencyandcompetitioninthemarketforpaymentservices,consistentwiththeoverallstabilityofthefinancialsystem.Thepaymentsystemisdividedintowholesaleandretailpaymentorders.TheRBAhasthefunctiontoregulateandsettletransactions.TheRBAunitedsomecardsystemcompanylikeVisaandMasterCard,toeconomizetimingofcitizens.Forexample,Australiancitizenshave9waystopaythephonebill(Wang,2003).Inaddition,theRBAprovidesfacilitiesforfinalsettlementofpaymentsystemobligation.Asthegovernment’sbanker,theRBAisresponsibleforissuingbanknote.Insomeways,centralbankissuesbanknotetocontroltheeconomy.IftheRBAdecreasesthereserverequirementratio,itwillinducetheincreasinginmoneysupplyinthemarket.Inflationmayhappen.II.FunctionsoftheAustralianPrudentialRegulatoryAuthority(APRA)Establishedon1July1998,theAustralianPrudentialRegulationAuthorityhastherightstosupervisethefinancialinstitutions.TheAPRAaimstoensurethatthefinancialinstitutionsarematchingwithastablefinancialmarket.Firstly,theAPRAissuesoperatinglicensestotheentity.Deposit-takinginstitutionsareregulatedbytheAPRAunderasinglelicensingregime.DomesticandForeignfinancialinstitutionscanapplytobecomeadeposit-takinginstitutionsiftheymeetthelicensingstandards.Licensingforinstitutionscanoperatefinancialmarketeffectively.Itrestrainsfinancialinstitutionstomanagelegally.Secondly,theAPRAenforcesprudentialsupervisionofdeposit-takinginstitutions,insurance,superannuationandfriendlysocieties.TheRBA,insuranceandpensionscommitteeandstate-relatedregulatoryauthoritysupervisethefinancialmarketseparatelybeforesupervisionoftheAPRA.TheadventoftheAPRAaltersthemethodfromdecentralizationtocentralization.ThebenefitofcentralizationisthatAPRAintegratesthestandardsofsupervision;thesamestandardprovidescoherencefortheprocessofsupervision.BasedonBankingAct1959,InsuranceAct1973andAustralianPrudentialRegulationAuthorityAct1998,theAPRAactsmorecautiousaccordingtotheLawandenhancestheprudentialregulatoryefficiencyandquantity(theAPRA,2011).Inthemeanwhile,financialinstitutionsthemselvesregularizetheirdailytransactionsandperformances,keepingbalanceoffinancialsafetyandefficiency.TheAPRAstrengthensthepublic’sconfidenceforfinancialinstitutions.Theyregulatetheunfairtreatmenthappenedinbanks,insurances,superannuationandsoon.Tosomeextents,thissupervisionprotectsthecustomer.Forinstance,theAPRArequiredCBA,Westpac,NBAandANZdraftaplantoassumethattheytrapintofinancialcrisisandhowtheycloseupanddisposetheirassetsinJuly2011(Zhen,2011).Theyhopebankscanreactquicklywhencrisishappenedsothatbottomoutofthebenefitsofdepositors.Thirdly,theAPRAtakeactionsonriskmanagementofregulators.Iftheregulatorsmeetthefinancialproblems,theAPRAwilltakemeasurestoprotectdepositors.TheAPRAmainlyfocusesonriskassessmenttomakesurethatinstitutionshaveaninternalriskcontrolsystem.Ifnecessary,theAPRAwillbedirectlyinvolvedintheoperationofinstitutionsandrequirethemtostrengthentheirriskmanagement.Thus,theAPRAhasdevelopedariskratingsystemcalledPAIRSandSOARS.TheAPRArequiresregulatoryagenciestoreportproblemsinactualsituations.TheAPRAsupervisesonriskmanagementmorethanregulatorycompliance.III.OverlappingfunctionsofRBAandAPRATherearefouragenciesthathavetheresponsibilitytoregulateandsupervisethefinancialmarket.TheyareAPRA,ASIC,RBAandtheAustralianTreasury.TheRBAandtheAPRAworkcloselytoensurethestabilityofAustralianfinancialmarket.Theycooperateoninformationsharing,reactrelativelyonfinancialrisk,negotia