australia financial system

7/30/2019 Australia Financial System

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Banks-Reserve Bank Of Australia (RBA)

Insurance-Australian Prudential RegulatoryAuthority (APRA)

Financial marketsAustralian Securities & InvestmentsCommission (ASIC)


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The Reserve Bank of Australia is

Australia's Central Bank. It was

established in1960.

Its duty is to contribute to themaintenance of price stability, full

employment, and the economic

prosperity and welfare of the Australian

people. Additionally, it manages

Australia's gold and foreign exchange

reserves.

Headquartered in Sydney, New south

Wales ,Australia. Presently Glenn

Robert Stevens is the Governor of

RBA.


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The Australian Prudential Regulation Authority (APRA)

is a statutory authority and the prudential regulator of the

Australian financial services industry.APRA was

established on 1 July 1998 .

It regulates banks, general and life insurance companies,

superannuation funds, credit unions, building societies

and friendly societies to ensure that these institutions

keep their financial promises; that is, that they will

remain financially sound and able to meet their

obligations to depositors, fund members and policyholders.

APRA is Headquartered in Sydney, Australia.


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The Australian Securities & Investments

Commission (ASIC) is an

independent Australian government body that

acts as Australia's corporate regulator. ASIC

was originally formed as the AustralianSecurities Commission (ASC), which came

into being on 1 January 1991.

ASIC's role is to enforce and regulate

company and financial services laws to

protect Australian consumers, investors and

creditors.

ASIC is headquartered in Melbourne,

Australia.


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Banks

Credit Unions

Building Societies

Non Deposit Taking Finance Companies

Insurance Companies


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There are 56 banks operating in

Australia (12 Domestic Banks,9 Foreign

subsidiary banks and 35 foreign branch

banks) as 30 September 2010.

The Australian banking sector is

dominated by four major banks:

Australia and New Zealand Bank

(ANZ), Commonwealth Bank of

Australia (CBA), National Australia

Bank (NAB), and Westpac BankingCorporation (WBC).

These banks provide full service retail

and commercial lending to the Australian

economy.


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Credit unions operate predominately in the

retail sector with business driven by deposit

taking, consumer credit and housing loan

finance.

The top five credit unions in Australia are-

Credit Union Australia Limited

Australian Central Credit Union

Savings & Loans Credit Union Limited

Police & Nurses Credit Society

NSW teachers Credit Union.


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Similarly to credit unions, the bulk of

building society business in the retail

sector, with less than 10% of their

activities estimated to be in the

commercial sector.Buliding societies tendto target their financing in niche and rural

markets that are not adequately covered by

the banks.

The top 4 Building Societies:

1.Heritage Building Society Limited.2.Newcastle Permanent Building Society.

3.Illawarra Mutual Building (IMB)

Society.

4.Greater Building Society.


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Non Deposit Taking Finance Companies

Represent another significant group of

institutions that service the retail banking sector

in Australia.

These institutions do not take deposits but have

traditionally provided strong competition in

consumer lending such as mortgage lending,

credit cards and asset or lease financing.

Examples include GE Money, Liberty

Financial, La Trobe Financial Services, AIMS

Financial Group, Assured Home Loans, Rate

Busters and Home Star.


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Major life insurance companies in

Australia are as follows:

AMP Insurance

MLC Insurance

AXA Insurance

Citicorp Life Insurance

Challenger Life Insurance

Aviva Life Insurance

Major Non-Life Insurance Companies

in Australia is as follows:

QBE InsurancePromina Insurance

Suncorp Insurance

Zurich Australian Insurance

West farmers Insurance

RACQ InsuranceAIG Insurance


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Australian securities Exchange

Sydney Futures Exchange

Newcastle Stock Exchange


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The Australian Stock Exchange Limited

was formed in 1987.

ASX Group was created by the merger of

the Australian Stock Exchange and the

Sydney Futures Exchange in July 2006and is today one of the worlds top-10

listed exchange groups measured by

market capitalisation. ASX functions as a

market operator, clearing house and

payments system facilitator. It alsooversees compliance with its operating

rules, promotes standards of corporate

governance among Australias listed

companies and helps to educate retail

investors.


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National Stock Exchange of

Australia (NSX) is a stock exchange based

in Newcastle, Australia.

On 20 December 2006 the Newcastle Stock

Exchange formally sought approval and was

granted a change of name by the Minister to

National Stock Exchange of Australia and

still trades by the acronym of NSX.

The NSX lists various companies withinAustralia and overseas that meet its listing

rule requirements. Trading is all-electronic

based on time and price priority using NETS

(the NSX Electronic Trading System).

australia financial system

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