SYDNEY: Australia’s banking regulator is pushing ahead to scrap the market for contingent convertible securities, despite some concerns, becoming the first country to phase out the securities that were wiped out after the collapse of Credit Suisse last year.
The Australian Prudential Regulation Authority (APRA) said yesterday it will phase out the use of Additional Tier 1 (AT1) capital instruments with what it says should be cheaper and more reliable forms of capital that would absorb losses more effectively in times of stress.
