Apra denies 8% Tier 1 capital claims
Daily news headlines
SYDNEY - The Australian Prudential Regulation Authority (Apra) has refuted media reports that it has set a minimum ratio of 8% for Tier 1 capital ratios for banks and other deposit-taking institutions (ADIs). The Australian regulator issued the statement on its website.
Australia implemented Basel II on January 1 2008. Apra says under that framework, ADIs are subject to an 8% prudential capital ratio (PCR) of total risk-weighted assets. Half of that may comprise other forms of capital - such as Tier 2, Tier 3 or 'hybrid' capital, and requiring 4% minimum as 'core' Tier 1.
The Apra statement says: "Apra can, and does, set PCRs for individual institutions at levels above 8%, to ensure that minimum capital requirements for an ADI are consistent with its overall risk profile. PCRs for individual institutions are not published."
Apra maintains Australian banks and ADIs are fulfilling their capital adequacy requirements and the sector is sound and well-capitalised.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SEC may lack legal clout to impose new dealer rule – Citadel
Adoption of quantitative dealer definition may require congressional changes to US Securities Exchange Act
US Basel endgame hits clearing with op risk capital charges
Dealers also fret about unlevel playing field compared with requirements in the EU
CFTC’s clearing house recovery rule splits industry
Some fear CCPs will fast-track recovery, others say any rule book will be ignored in emergency
EU banks ‘will play for time’ in stand-off over India’s CCPs
Lawyers say banks are unlikely to set up subsidiaries and will instead pin hopes on revised Emir fix
ECB mulls intervention on uneven banking book reporting
Inconsistency among EU banks on whether deposits and loans are in scope for credit spread risk
Iosco warns of leveraged loan ‘vulnerabilities’
As recovery rates plummet, report calls for clearer covenants and more transparency on addbacks
Narrow path to compromise on EU’s post-Brexit clearing rules
Lawmakers unlikely to support industry demand to delete Emir active accounts proposal altogether
The Fed’s stress test models are inaccurate. Something has to change
First step for US regulator to improve its bank loss forecasts would be to open up its models to public scrutiny, argue two banking industry advocates
