Distinguished ladies and gentlemen,  33. In addition to the above macro challenges, another significant test relates to how the financial sector contributes to economic development through effective and efficient financing. The Banking Act No.7 Year 1992 as amended by Act No.10 Year 1998 clearly stipulates the banking industry to play intermediary role for the economy in an effective and efficient manner. 34.
The Reserve Bank will again be publishing a detailed analysis of developments in banks’ funding costs and lending rates in the next RBA Bulletin which is released on 21 March.4 Foreign exchange transactions I’ll now talk about the Bank’s transactions in foreign exchange markets. The Bank transacts in foreign exchange markets for a number of reasons.