Australian banks have one year to raise US$7bil

SYDNEY: Australian banks have one year to raise US$7bil under new rules requiring a bigger cash buffer, a move widely expected to hit profits and push up mortgage rates, slowing a real estate rush that has economists warning of a property bubble.

The financial regulator also said large banks and mortgage rival Macquarie Group Ltd may have to raise more in future as the country shifted from letting property lenders decide cash reserves to making them follow global standards.