More capital: Pedestrians walking past an ANZ Bank branch in Melbourne. The bank says the changes will result in an incremental increase to its total capital requirement of about A$12bil. — Bloomberg
MELBOURNE: Australia’s banking regulator has softened its capital buffer requirement on the nation’s largest banks after they argued that there wasn’t sufficient market capacity available to raise the necessary funds.
The so-called Big Four banks will need to lift their total capital by three percentage points of risk-weighted assets by January 2024, less than an initial target of four to five percentage points, the Australian Prudential Regulation Authority (APRA) said in a statement yesterday. The higher target remains the longer-term goal once APRA has considered ways to boost the pool of available capital.
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