International Financial Cooperation

The Reserve Bank participates in initiatives that seek to address the challenges facing the international economy and improve the global financial architecture. It does so through its membership of global and regional forums and its close bilateral relationships with other central banks.

Group of Twenty (G20) identifying possible policy measures to respond to them. Japan has continued the G20’s work on Purpose promoting private investment in infrastructure, The G20 facilitates international cooperation but with a focus on the quality of infrastructure on economic, financial and other policy issues investment. This work was advanced by the among 19 country members – including G20’s Infrastructure Working Group, which is Australia – from all regions of the world, as co-chaired by the Australian Treasury. well as with the European Union, International The G20 has also continued to discuss how to Monetary Fund (IMF) and other international strengthen the international monetary system. organisations. This discussion has been aided by a report by Reserve Bank Involvement the G20 Eminent Persons Group, which was a focus of the G20 Ministers’ and Governors’ The Reserve Bank is represented at high-level meeting in October 2018. The G20 has reiterated meetings of the G20 by the Governor and its commitment to a strong, quota-based and Assistant Governor (Economic), while other adequately resourced IMF at the centre of senior staff participate in select G20 working the global financial system. Accordingly, the groups and contribute to the G20’s financial G20 has committed to complete a review of regulation reform agenda. the IMF’s permanent ‘quota’ resources by late 2019. The G20 has also continued to monitor The G20 presidency was held by Argentina from the risks stemming from excessive volatility in December 2017 to December 2018. In January capital flows, as well as how to promote the 2019, the G20 presidency rotated to Japan. A key transparency and sustainability of sovereign debt. theme of the Japanese presidency is ageing, with a focus on understanding the macroeconomic The G20 continues to pursue the full, timely implications of demographic change and and consistent implementation of the financial identifying appropriate policy responses. Another sector reforms developed and agreed after the important theme has been monitoring of global global financial crisis, such as Basel III (to build imbalances – that is, persistent and excessive resilient financial institutions). With many of current account deficits and surpluses – and these policy reforms now largely implemented,

76 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 77 Governor Philip Lowe (third row, second from right) with participants at the G20 Finance Ministers and Central Bank Governors Meeting, Fukuoka, June 2019 Source: Mr Kazuki Watanabe

Reserve Bank Involvement in the G20

G20 Finance Ministers’ and Central Bank Governors’ Meetings

Deputies’ Meetings

Framework for Financial Regulation Strong, Sustainable, International Financial Reform Workstream Balanced and Architecture (input via bodies Inclusive Growth Working Group including the Financial Working Group Stability Board)

the G20 and Financial Stability Board (FSB) have monitoring of developments in financial shifted their focus away from post-crisis policy technology (‘fintech’), including crypto‑assets development and implementation, to assessing and, where necessary, responding to the risks the effectiveness of the reforms. This work posed. The Reserve Bank, along with other aims to determine if the reforms are meeting Council of Financial Regulators (CFR) agencies, their intended objectives and whether there continues to work with overseas counterparts on have been any material adverse consequences. these and other global regulatory issues. The G20, in conjunction with the FSB and the global standard-setting bodies, also continues Financial Stability Board (FSB) to monitor and address current vulnerabilities in Purpose the financial system (such as banks’ exposures to leveraged loans), as well as medium-term The FSB promotes international financial emerging risks. The latter has included stability by coordinating national financial sector authorities and international

76 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 77 on infrastructure financing. Further evaluations standard‑setting bodies as they work towards are under way, looking at the effects of reforms developing strong regulatory, supervisory on financing for small and medium-sized and other financial sector policies. It also plays enterprises, and the ‘too big to fail’ reforms. A a central role in assessing new and evolving representative of Financial Stability Department is trends and risks. a member of the ‘too big to fail’ evaluation team. FSB members include representatives from 24 The Standing Committee on Assessment economies as well as the main international of Vulnerabilities is the main FSB body for financial institutions – including the Bank for identifying and assessing risks in the global International Settlements (BIS) and the IMF – financial system. Supporting this committee are and standard-setting bodies such as the Basel the Analytical Group on Vulnerabilities and the Committee on Banking Supervision (BCBS). Financial Innovation Network, which provides Reserve Bank Involvement input on the financial stability implications The main decision-making body of the FSB is of financial innovation (such as fintech and the Plenary. The Governor is a member of the cloud services). Global vulnerabilities recently Plenary, as well as the Steering Committee considered by the Standing Committee and the Standing Committee on Assessment have included high private and public debt, of Vulnerabilities. The Governor also elevated asset values and weaker lending continued to serve as co-Chair of the Regional standards. It has also examined risks in particular Consultative Group for Asia until his term markets and products. This has included ended on 30 June 2019. highlighting concerns about the extent of financial institutions’ exposures to riskier Senior staff members of Financial Stability credit instruments, such as leveraged loans, Department participate in meetings of the: both directly and through collateralised loan •• Analytical Group on Vulnerabilities, obligations. The Standing Committee is currently which supports the work of the seeking to develop a clearer framework for Standing Committee on Assessment of the assessment of vulnerabilities. This should Vulnerabilities support a comprehensive, methodical and •• Resolution Steering Group (until June 2019) disciplined assessment of new and emerging risks to financial stability. The Assistant Governor •• Financial Innovation Network. (Financial System) is leading one of the work As noted above, while the FSB has continued to streams contributing to the new framework, pursue regulatory reform of the global financial exploring the features of a well-defined system, its focus has shifted in recent years from surveillance process. policy design and implementation monitoring, The FSB has continued its work on addressing to evaluating the effects of the post-financial the risks posed by non-bank financial 1 crisis reforms. Initial evaluation work examined intermediation (NBFI) (previously referred to as the effects of reforms on the incentives to ‘shadow banking’). This refers to credit provision centrally clear over-the-counter derivatives, and involving entities and activities outside of the regular banking system. A key part of this work 1 Further detail on activities of the FSB is reported in the ‘Regulatory Developments’ chapter of the Reserve Bank’s semi-annual Financial is an annual global monitoring exercise, which Stability Review.

78 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 79 Australian Involvement in Key FSB Committees

FSB Plenary RBA, Treasury

Regional Consultative Steering Committee Group for Asia RBA RBA (co-Chair)(a), Treasury

Standing Committee Standing Committee on Standing Committee Resolution on Assessment of Supervisory & Regulatory on Standards Steering Group Vulnerabilities Cooperation Implementation RBA(a) RBA APRA Treasury

Analytical Group on Vulnerabilities RBA

(a) Until June 30 2019

collects data on NBFI sectors within FSB and •• Cross-border Crisis Management Group for several non-FSB jurisdictions. The Reserve Bank is Financial Market Infrastructures, a subgroup represented on the FSB’s Non-bank Monitoring of the Resolution Steering Group working Experts Group (previously known as the Shadow on resolution arrangements for central Banking Experts Group), which conducts this counterparties and other financial market monitoring exercise and associated risk analysis. infrastructures. Reserve Bank staff members also took part in •• Official Sector Steering Group, which a number of other key FSB work areas during is progressing reforms of interest rate 2018/19, including meetings of the: benchmarks, including coordinating the •• Resolution Steering Group, which is transition away from LIBOR (the London progressing the FSB’s work on enhancing Inter-Bank Offered Rate) towards alternative resolution frameworks in line with interest rate benchmarks. international standards. Its recent policy focus •• Regional Consultative Group for Asia, one of has included: the adequacy of resources six regional groups established to expand the for central counterparty resolution; the FSB’s outreach activities with non-member arrangements for external and internal economies and to examine issues relevant for total loss-absorbing capacity at banks; and the region. continuity of access to financial market As a member of several FSB committees, the infrastructures for a bank in resolution. The Reserve Bank hosts committee meetings from Resolution Steering Group also serves as an time to time. It hosted meetings in Sydney of the important forum to exchange information Regional Consultative Group for Asia (November about resolution experience. The Australian 2018), and of the Non-bank Monitoring Experts Prudential Regulation Authority (APRA) took Group (March 2019). over Australia’s membership of this group in June 2019.

78 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 79 Bank for International Settlements may affect financial markets, particularly central (BIS) bank operations. Recent topics of discussion have included: changes in how monetary policies Purpose have been implemented and how this interacts The BIS and its associated committees play with financial markets; implications of reforms to an important role in supporting collaboration benchmark interest rates; and how technological among central banks and other financial change is affecting the structure of financial regulatory bodies. They do so by bringing markets and central bank operations. together officials to exchange information During 2018/19, Reserve Bank staff participated and views about the global economy, in a number of working groups of the Markets vulnerabilities in the global financial system Committee and Committee on the Global and other issues affecting the operations of Financial System, including: central banks. •• a Committee on the Global Financial System Reserve Bank Involvement working group on establishing viable capital The Reserve Bank is one of 60 central banks markets, which published its final report in holding shares in the BIS. The Governor or January 2019 Deputy Governor attends the bimonthly •• a Committee on the Global Financial System meetings of governors and participates in study group on property price dynamics. meetings of the Asian Consultative Council. The Governor chairs the Committee on the Basel Committee on Banking Global Financial System, and the Assistant Supervision (BCBS) Governor (Financial Markets) is a member of the Markets Committee and the Committee Purpose on the Global Financial System. The BCBS is hosted by the BIS and is the international standard-setting body for the The Committee on the Global Financial System banking sector. It provides a forum for regular seeks to identify potential sources of stress cooperation on banking supervisory matters in the global financial system and promotes among its 28 member jurisdictions. It seeks the development of well-functioning and to enhance understanding of key supervisory stable financial markets. During 2018/19, the issues and improve the quality of banking committee’s discussions included: global supervision worldwide. financial vulnerabilities amid downward revisions to the outlook for global growth and Reserve Bank Involvement risks related to political and trade tensions; the The Governor is a member of the Group of development of resilient capital markets; and Governors and Heads of Supervision, which is financial stability implications of scenarios in the oversight body for the BCBS. The Assistant which interest rates globally remain low for Governor (Financial System) is a member an extended period or move unexpectedly of the BCBS. A Deputy Head of Financial higher. The Markets Committee considers how Stability Department is a member of the economic and other developments, including Macroprudential Supervision Group. regulatory reform and technological change,

80 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 81 Over the year in review, the Group of Governors policy work on the regulation and oversight of and Heads of Supervision (GHOS) endorsed financial market infrastructures. revisions to the BCBS market risk framework, which had been a major area of work in the Reserve Bank Involvement past year, and which take effect from 2022. The Staff members from Payments Policy BCBS also considered interest-rate benchmark Department are members of the CPMI, reforms, aspects of the Basel III leverage ratio CPMI-IOSCO Steering Group, CPMI-IOSCO requirement, banks’ exposures to crypto-assets Implementation Monitoring Standing Group and associated risks, and the results of the annual and CPMI-IOSCO Policy Standing Group. global systemically important banks (G-SIBs) The Head of Payments Policy Department identification exercise (see below). GHOS also is chair of the CPMI’s RTGS (Real-time Gross endorsed the BCBS’s strategic priorities and Settlement) Working Group, which includes work program for 2019, which include: finalising a staff member from Payments Settlements ongoing policy reforms; ensuring full, timely and Department as a participant. Staff members consistent implementation of the BCBS’s post-crisis in Payments Policy Department participate reforms; evaluating and monitoring the impact of in the CPMI’s Working Group on Digital the post-crisis reforms; assessing emerging risks; Innovations and a Payments Settlements and promoting strong supervision. Department staff member participates in a The Macroprudential Supervision Group focuses task force on wholesale payments security. on policies designed to address systemic risks arising from the banking sector, especially those Staff members from Payments Policy Department posed by G-SIBs. The group discussed several contributed to a number of CPMI-IOSCO issues during 2018/19, including: the annual G-SIB implementation monitoring reports that were assessment exercise, which underpins the list of published in 2018/19. Staff also contributed to a G-SIBs identified by the FSB; the next three-year CPMI-IOSCO Policy Standing Group discussion review of the G-SIB identification methodology; paper on default management auctions. and the experience with, and effectiveness of, the Basel III counter-cyclical capital buffer. Cooperative Oversight Arrangements Committee on Payments and Market Infrastructures (CPMI) Purpose Several overseas-based financial market Purpose infrastructures hold Australian clearing The CPMI is hosted by the BIS, and serves and settlement facility licences, for which as a forum for central banks to monitor and the Reserve Bank has certain regulatory analyse developments in payment, clearing and responsibilities under the Corporations Act 2001. settlement infrastructures and sets standards for An overseas-based payments system also plays them. It has members from 28 central banks. an important role in Australia’s financial system. The Reserve Bank participates in several Joint working groups of the CPMI and the multilateral and bilateral arrangements to International Organization of Securities support its oversight of these financial market Commissions (IOSCO) bring together infrastructures, as set out below. members of these two bodies to coordinate

80 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 81 Reserve Bank Involvement also contributes to the IMF’s supplementary Staff from Payments Policy Department borrowed resources. The Reserve Bank participated in: supports the Constituency Office at the IMF by seconding an advisor with expertise in •• an arrangement led by the Federal Reserve economic and financial sector matters. The Bank of New York to oversee CLS Bank Bank also works with the Australian Treasury to International, which provides a settlement provide support to the Constituency Office on service for foreign exchange transactions matters discussed by the IMF’s Executive Board. •• a global oversight college and a crisis management group for LCH Limited, both A core function of the IMF is to provide chaired by the Bank of England conditional financial assistance to member •• an information-sharing arrangement countries encountering balance of payments with the US Commodity Futures Trading difficulties. During the IMF’s 2018/19 financial Commission, in relation to CME Inc. year (which runs from May to April), the IMF provided seven new lending arrangements •• the Society for Worldwide Interbank (excluding concessional facilities) with a total Financial Telecommunication (SWIFT) value of 59 billion Special Drawing Rights Oversight Forum, chaired by the National (SDRs). This included a three-year SDR35 billion Bank of Belgium. stand-by lending program to Argentina, which was increased to SDR41 billion in September. IMF International Monetary Fund (IMF) non-concessional credit outstanding increased Purpose by around 40 per cent in the 12 months to July 2019, primarily because of payments to Argentina The IMF oversees the stability of the under its lending arrangement. international monetary system via: The Reserve Bank and other CFR agencies •• bilateral and multilateral surveillance, continued to work closely with the IMF during which involves monitoring, analysing and the first half of 2018/19 as the IMF concluded providing advice on the economic and its 2018 Financial Sector Assessment Program financial policies of its 189 members and (FSAP) review of Australia’s financial system the linkages between them – Article IV and regulatory framework. The IMF focused on consultations, which are a key means assessing financial sector vulnerabilities and the to do this, are conducted for Australia overall framework for systemic risk oversight, as every year well as Australia’s banking regulatory framework •• the provision of financial assistance to and supervisory practices. It reviewed the member countries experiencing actual or regulation of financial market infrastructures and potential balance of payments problems. the insurance sector, and crisis management arrangements. The FSAP assessment was Reserve Bank Involvement informed by responses to detailed questionnaires, Australia holds a 1.39 per cent quota share in along with a large number of face-to-face the IMF and is part of the Asia and the Pacific meetings. These included a high-level discussion Constituency, which is represented by one with agency heads during the September 2018 of the IMF’s 24 Executive Directors. Australia CFR meeting, as well as more policy related and

82 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 83 IMF New Arrangements* IMF financial years, non-concessional lending Australia, China, Hong Kong SAR, Indonesia, no Number no Japan, Malaysia, New Zealand, the Philippines, 12 12 Singapore, South Korea and Thailand – to discuss issues relevant to monetary policy, 6 6 financial markets, financial stability and payments systems in the region. SDRb Amount SDRb

120 120 Reserve Bank Involvement The Reserve Bank participates in EMEAP, 60 60 including at the Governor and Deputy Governor levels. Staff also participate in the 0 0 03 / 04 07 / 08 11 / 12 15 / 16 19 / 20 EMEAP Working Groups on Financial Markets, IMF financial year runs from May to April; the observation for 19/20 is * for May to July 2019; excludes augmentations of existing arrangements Banking Supervision, and Payments and Market Sources: IMF; RBA Infrastructures, and in meetings of Information technical meetings with individual CFR agencies, Technology (IT) Directors. These groups also other government bodies and private sector maintain close relationships with international firms, including banks. The key findings of the institutions such as the IMF and the BIS, FSAP review were published in the IMF’s Financial through regular dialogue on topical issues. System Stability Assessment in February 2019. The Monetary and Financial Stability Committee The IMF’s overall assessment was positive, meeting, which is chaired by the Deputy indicating that the Australian financial system Governor, provides an important forum for the is fundamentally sound and has been further discussion of current economic and financial strengthened since the IMF’s previous market issues of direct relevance to EMEAP assessment in 2012. Nonetheless, the IMF made members. The two meetings of the Monetary and several recommendations to improve current Financial Stability Committee in 2018/19 focused arrangements. CFR agencies have been considering on the effect of trade tensions on the EMEAP how best to address the IMF’s recommendations. economies and also considered the application of Over the course of the past year, several distributed ledger technology, financial stability Reserve Bank staff were seconded to the IMF as issues and cybersecurity. Developments in fintech short-term experts. One staff member assisted continued to be a major focus of discussions. as a technical expert in the FSAP review of a The Working Group on Financial Markets focuses foreign jurisdiction, while another contributed to on the analysis and development of foreign a training program on payment system oversight exchange, money and bond markets in the for central banks in developing countries. region. Every second meeting of this group Executives’ Meeting of East is held in conjunction with the BIS Financial Asia-Pacific Central Banks (EMEAP) Markets Forum. The group continued its work on developing local currency bond markets, Purpose through the Asian Bond Fund Initiative (see the chapter on ‘Operations in Financial Markets’ for EMEAP brings together central banks from 11 details of the Reserve Bank’s investments in the economies in the east Asia-Pacific region – Asian Bond Fund). Areas of focus in 2018/19 also

82 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 83 Governor Philip Lowe (first from left) with participants at the EMEAP Governors’ Meeting, Manila, August 2018 Source: Jason Arlan Raval Bangko Sentral ng Pilipinas

Reserve Bank Involvement in EMEAP

Governors’ Meetings

Monetary and Deputies’ Meetings Financial Stability Committee

Working Group on IT Directors’ Working Group on Working Group on Payments and Market Meetings Financial Markets Banking Supervision Infrastructures

included financial benchmark reform and the forum for sharing information and experiences development of securities lending in Asia. relating to the development, oversight and The Working Group on Banking Supervision regulation of retail payment systems and (which also includes representatives of EMEAP financial market infrastructures. The group members’ prudential regulators, including discussed a range of issues during the year in APRA) is a forum to share experiences about review, including: best practices in banking supervision and to •• the development of fast retail payment discuss issues of relevance in the region. During systems and other efforts to facilitate the shift the past year, members discussed the health of towards electronic payments banking systems in the region, financial stability •• initiatives to enhance the security and risks, and the implementation of Basel III and efficiency of cross-border payments other post-financial crisis reforms. The group also •• developments in crypto-asset markets and discussed issues such as bank culture, the future emerging regulatory approaches for dealing of banking, bank recovery planning and cyber with the risks associated with crypto-assets resilience practices. •• measures to build resilience and enhance the The EMEAP Working Group on Payments and security of financial market infrastructures, Market Infrastructures (formerly the Working including in response to cyber-risks Group on Payment and Settlement Systems) is a

84 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 85 •• the application of new technologies, such as towards a low-carbon economy. The focus of the distributed ledger technology, to payment Macrofinancial workstream over the past year systems and financial market infrastructures. was on measuring the effect of climate change The IT Directors’ Meeting provides a forum and related risks on macroeconomic variables for discussions on developments in IT and and financial stability, and identifying scenarios its implications for central banks. Recent and climate risk indicators for use by central meetings have focused on IT developments banks and supervisors. in central banks, including the adoption of cloud technology, cyber security and people Global Foreign Exchange management strategies. Committee (GFXC) Purpose Network for Greening the Financial System (NGFS) The GFXC is a forum that brings together central banks and private sector participants Purpose in the wholesale foreign exchange market. The NGFS is a group of central banks and The committee aims to promote a robust supervisors whose purpose is to share best and liquid market. One means by which it practices, contribute to the development does this is through the maintenance of the of climate and environment-related risk FX Global Code as a set of principles of good management in the financial sector, and practice for market participants. mobilise mainstream finance to support the Reserve Bank Involvement transition towards a sustainable economy. The Reserve Bank sponsors the Australian As at July 2019, the Network had grown to Foreign Exchange Committee (AFXC), one comprise 42 members and eight observers, of the 17 regional committees that comprise across six continents. the membership of the GFXC. The Assistant Reserve Bank Involvement Governor (Financial Markets) is Chair of the The Reserve Bank joined the NGFS in July AFXC and the Bank’s representative on the 2018. The Deputy Governor represents the GFXC. In June 2019, the Deputy Governor Bank on the NGFS Plenary, supported by other became Chair of the GFXC. senior staff. The NGFS has divided its work into three workstreams. The Bank is involved in During the year in review, the GFXC met twice, the Macrofinancial workstream, which aims to discussing recent developments in market develop an analytical framework for assessing structure and ongoing efforts to expand climate-related risks to the economy and adherence to the FX Global Code throughout financial system. the industry. The GFXC also published reports on the role that disclosures play within the market The NGFS produced two reports in 2018/19, and on the trading practices of dealers that including its first comprehensive report. The seek to avoid market risk when transacting with comprehensive report set out a range of their clients. recommendations, including for central banks and supervisors, to support a smooth transition

84 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 85 Organisation for Economic Technical Cooperation and Co-operation and Development Bilateral Relations (OECD) Australia Indonesia Partnership for Purpose Economic Development (Prospera) The OECD comprises the governments of The Bank participates in the Australian 36 countries and provides a forum in which Government’s ‘Prospera’ program, which governments can work together to share in 2018/19 brought together the former experiences and seek solutions to common Government Partnership Fund and the Australia problems, including economic and financial Indonesia Partnership for Economic Governance ones. programs. Under the Prospera Program, the Bank will work with Bank Indonesia, as it did under Reserve Bank Involvement the Government Partnership Fund program, The Reserve Bank’s Chief Representative in to promote institutional capacity building. In Europe participates in the OECD’s Committee 2018/19, a range of activities were agreed with on Financial Markets and the Advisory Task Bank Indonesia relating to the payments system, Force on the OECD Codes of Liberalisation. note issue, information technology and statistics. These activities will be undertaken in 2019/20. The OECD Committee on Financial Markets examines a range of financial market issues and Engagement in the South Pacific aims to promote efficient, open, stable and The Reserve Bank fosters close ties with South sound financial systems. The committee’s regular Pacific countries through participation in discussions with private sector experts in 2018/19 high-level meetings, staff exchanges and the covered environmental, social and governance provision of technical assistance across a wide investing, and open banking. The committee has range of central banking issues. also continued to review and contribute to the In November 2018, the Reserve Bank participated OECD’s work on fintech and digitalisation. in the annual meeting of the South Pacific The OECD’s Codes of Liberalisation are Central Bank Governors, held in Samoa. A key rules-based frameworks to promote the freedom outcome of the meeting was an agreement of cross-border capital movements and financial among governors to lead the development services. All OECD members adhere to the codes. of a regional ‘Know-Your-Customer’ utility The Advisory Task Force on the OECD Codes and associated regionally linked payment and of Liberalisation meets periodically to address settlement arrangements in response to the questions and discuss policy issues related to decline in correspondent banking in the region. the codes. It also examines specific measures In April 2019, the governors met in New Zealand by individual adherents with relevance to their to advance this work. obligations under the codes. During 2018/19, the The Reserve Bank of Australia Graduate task force completed its review of the Code of Scholarship for Bank of Papua New Guinea Liberalisation of Capital Movements. officers to undertake postgraduate studies at an Australian university in the areas of economics, finance and computing was first awarded in 1992. The most recent recipient of this

86 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 87 Photo: Central Bank of Samoa

Assistant Governor (Business Services) Lindsay Boulton (far right) with participants at the 2018 South Pacific Central Bank Governors’ Meeting, Samoa, November 2018

scholarship commenced studies at the University of Queensland in July 2018; the previous recipient completed their studies in October 2016.

International visitors and secondments As in previous years, the Reserve Bank hosted a number of overseas visitors, predominantly from foreign central banks. The visits covered the full range of the Bank’s activities and included delegations from China, Finland, Indonesia, Papua New Guinea and South Korea. The Bank also hosted a number of secondees from the Bank of Canada, the Bank of England, the Deutsche Bundesbank and the Reserve Bank of New Zealand. A number of Reserve Bank staff were seconded to other central banks and various international organisations, including the BIS, the Bank of Canada, the Bank of England, the IMF, and the Reserve Bank of New Zealand. These arrangements facilitate a valuable exchange of skills and expertise between the Bank and the broader global economic and financial policymaking community.

86 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION 87 88 RESERVE BANK OF AUSTRALIA ANNUAL REPORT 2019 | INTERNATIONAL FINANCIAL COOPERATION PB