BFF1001 Lecture Notes - Lecture 10: Building Society, Monetary Policy, Money Supply
Document Summary
Central banking has a long history that stretches back as far as the 17th century. The main role of central banks is to regulate a nation s money supply and its financial institutions. Central banks aim to maintain a stable economic environment and effective payments system. In australia, the role of monetary authority is split among three independent agencies: The rba is responsible for monetary policy, the payments system and the stability of the entire financial system. Apra is responsible for prudential supervision of financial institutions including banks, credit unions, building societies, insurance and superannuation companies. Asic is responsible for the enforcement of company and financial services laws. The objective is to protect consumers, investors and creditors. Asic is also responsible for licensing and monitoring financial markets and advisors as well as monitoring the disclosure and conduct of australian companies and services providers. The bis is an international monetary authority based in basel, switzerland.
