Apra toughens mortgage risk weights for Australian banks

Financial stability fears drive regulators to raise capital levels for banks

australia property

A week after the Australian Prudential Regulatory Authority (Apra) announced its decision not to stipulate the nation's major banks' capital ratios be in the top quartile of their international peers, the regulator has shown it is not softening its stance on capital adequacy following a 9% increase in residential mortgage risk weights.

The authority announced that from July 1, 2016, the average risk weight on Australian residential mortgage exposures for banks using the internal ratings-based

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