House of Representatives Committees

Standing Committee on Economics, Finance and Public Administration

Review of the Reserve Bank of Australia annual report 1996-97

Media release, 1 September 1997

IMPROVED ACCOUNTABILITY OF THE RESERVE BANK OF AUSTRALIA

The Chairman of the House of Representatives Financial Institutions Committee, David Hawker MP, welcomed the revised format of the Reserve Bank of Australia's annual report.

Mr Hawker said the annual report released today now places greater emphasis on the Bank's operations, particularly on the financial markets and prudential supervision.'

"These aspects of the Bank's activities have tended to take a back seat compared to the more glamorous matter of monetary policy.

"This new approach, whereby monetary policy is reported on in a more timely manner through the Bank's six monthly appearances before this Committee and through speeches and published articles, while the operational aspects of the Bank's activities receive more attention in the annual report, will serve to further improve the Bank's accountability and transparency.

"The framework established by the Treasurer's Statement on the Conduct of Monetary Policy has facilitated a significant improvement in the understanding of Bank's conduct of monetary policy and the Committee is pleased to have played a constructive role in that process.

"The Committee is looking forward to the Bank's continued positive approach to reporting on monetary policy when it next appears before the Committee on 6 November in Melbourne," Mr Hawker added.

"I also expect that the Committee will increase its focus on prudential and supervisory issues at the hearings over the next twelve months.

"I would also like to thank the RBA for its enthusiastic and cooperative approach to its appearances before this Committee. Without that cooperation, the Committee's objective of improving the level of community understanding of the activities of the Bank would not have been possible.

''The Committee looks forward to building on the work of the last five years at the November hearing. There are a number of matters the Committee wishes to pursue with the Bank in addition to monetary policy including: gold sales; interest rates for small business; the continued development of capital adequacy arrangements once the outcome of Wallis is determined; and the Bank's commercial operations," Mr Hawker said.

Ends
1 September 1997
Further information: David Hawker MP (Chairman) (02) 6277 4100
Chris Paterson (Secretary, FIPA Committee) 02 6277 4587

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