The Commonwealth Bank of Australia (CBA) began as a government-established bank with both savings and trading functions. Its role changed over time: it served as a commercial bank, took on central banking responsibilities, and later became a privately owned banking group. This page provides a brief, source-linked overview of those changes.
Establishment and early years
The Commonwealth Bank Act 1911 established the bank. It opened for business in 1912 and was authorised to conduct savings and general banking. During the First World War, it organised government loans and provided banking services to servicemen. CommBank?s account of the period says the bank oversaw ten bond campaigns that raised ?250 million between 1915 and 1921.
Central banking responsibilities
The bank?s responsibilities expanded during the twentieth century. In 1924, it received control over the issue of Australian banknotes. Legislation in 1945 formalised broader powers over monetary and banking policy. The Reserve Bank of Australia?s history describes how these central banking functions developed.
The 1959?60 transition
The Reserve Bank Act 1959 separated central banking from commercial banking. From 14 January 1960, the original corporate body continued as the Reserve Bank of Australia with central banking functions, while commercial banking activities moved to the Commonwealth Banking Corporation. The RBA provides a detailed account of this transition in its institutional history.
Privatisation and the modern bank
The Commonwealth Bank was fully privatised in 1996. For the bank?s account of its later development, see CommBank?s official history and archives. The Parliamentary Education Office also provides a concise overview of the Commonwealth Bank Act 1911.
This overview summarizes the cited institutional and government sources. It is not a downloadable copy of the former document linked from this website.