Banks in Australia Key Terms

Use the banks in Australia key terms to improve your asset allocation strategy

The Australian banking system is one that is very similar to its counterpart in the United States. Therefore, it's relatively easy for companies from the States to make the transition to banking in Australia. The main difference in the two banking systems is the currency and the terminology for the banking institutes. If you begin to understand these points, your decision to invest capital in the banks of Australia becomes one of opportunity. The terms listed below alone won't make you an Australian banking expert. However, they will provide a solid knowledge base from which to build the necessary industry expertise.

Reserve Bank of Australia

The Reserve Bank of Australia functions as the bank to the government and regulates monetary policy in the country. Another primary goal for the institution is the financial stability of the Australian banking system.

National Australia Group

The National Australian Group is a global full-service financial organization that provides banking in Australia, America, New Zealand and the United Kingdom.

HSBC Group

The HSBC Group is an international banking institute that's not based in Australia but does have a strong presence in the country. Often a truly international bank can be the best financial option, especially if you are unfamiliar with the laws and structure of the country in question.

Australian dollar

The Australian dollar is the primary currency in the country. It's also important to know the exchange rate of the Australian dollar relative to the U.S. dollar.

Authorized Deposit-taking Institution

An Authorized Deposit-taking Institution is a bank that's government inspected and approved to take in deposits from customers. Before you make a deposit in any Australian bank, be sure to determine if they are an Authorized Deposit-taking Institution.

Australian Prudential Regulation Authority

The Australian Prudential Regulation Authority is the entity responsible for the regulation of individual banks in the country. The Australian Prudential Regulation Authority regulates all banks, credit unions, insurance companies, building societies and other financial entities within Australia.