Page "Reserve Bank of Australia" Paragraph 16

Through the new Commonwealth Bank Act and the Banking Act in 1945, the Board was replaced by a six-member council, fully consisting of Bank and Treasury officials.

It additionally formalised the Bank's administrative powers of monetary and banking policy and exchange control and also stated the Governor was responsible for managing the Bank.

Highly debated legislation in 1945 caused high amounts of regulation on private banks, which later-Governor H. C. Coombs was opposed to, along with his opposition to bank nationalisation in 1947.

When he became Governor in 1949, he allowed the private banks to have more control over their liquidity and attempted to introduce market-based monetary policy.

He also warned of the possibility of stagflation in 1959.