Reserve Bank of Australia | | Reserve Bank of Australia In 1911, legislation established the Commonwealth Bank of Australia. Originally, the main functions of this bank were to carry on the general business of banking and the business of a savings bank. Central banking functions developed gradually until the Second World War when wide powers were conferred in areas such as exchange control and the administration of monetary and banking policy. These functions and powers were formalised in 1945 in the Commonwealth Bank Act and the Banking Act. Legislation in 1959 preserved the original corporate body under the new name of the Reserve Bank of Australia to carry on the central banking functions of the Commonwealth Bank, but separated commercial banking and savings banking activities into the new Commonwealth Bank of Australia. The Reserve Bank Act 1959 took effect from 14 January 1960; since that date, the Reserve Bank has been Australia's central bank with its own Board, Governor and staff.
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