The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought. The SARB was only the fourth central bank established outside the United Kingdom and Europe, the others being the USA, Japan and Java.
Unlike the Bank of England, which provided the model for establishing the SARB, the SARB is privately owned.[1]
[edit] Functions of the South African Reserve Bank
- Formulating and implementing monetary policy;
- Issuing banknotes and coin;
- Supervising the banking system;
- Ensuring the effective functioning of the national payment system (NPS);
- Managing official gold and foreign-exchange reserves;
- Acting as banker to the government;
- Administering the country's remaining exchange controls; and
- Acting as lender of last resort in exceptional circumstances.
[edit] Organizational Structure
[edit] Board of Directors
The South African Reserve Bank has a board of directors consisting of a Governor, three Deputy Governors, and and eleven Directors. The Governor, and Deputy governors are appointed for five year terms by the President of the Republic of South Africa in consultation with the Minister of Finance. Four of the directors are also appointed by the President of the Republic of South Africa for terms of three years. The remaining seven directors are appointed by the Shareholders of the Bank, also for a three year term. [2]
[edit] Ownership
The Reserve Bank is privately owned, with 2,000,000 shares issued shares. The only limitation on shareholding is that no single shareholder may own more than 10,000 shares individually. Currently there are more than 660 shareholders owning shares in the South African Reserve Bank.
Shareholders are entitled to a 10c South African Rand dividend per annum (the total dividend therefore is 200,000 South African Rand), with the remaining profits being paid to the South African government. [3]
[edit] List of Governors of the South African Reserve Bank.
[edit] See also
[edit] External links
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By continent
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Africa
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Americas
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Asia
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Europe
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Oceania
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Policies and implementation
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Coordinates: 25°44′43″S 28°11′46″E / 25.74528°S 28.19611°E / -25.74528; 28.19611
