Apra denies 8% Tier 1 capital claims
Australian regulator Apra has rejected claims it set an 8% Tier 1 capital ratio requirement
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
As risk of US Basel delay grows, Europe is in a bind over CVA
European Commission may postpone FRTB, but it’s hard to separate surgically from rest of framework
FRTB start dates must align globally, says European Commission
Lawmaker could trigger delay to market risk rules in Europe if US implementation drags on
Fed green lights more capital relief trades
Five US banks authorised to issue repeat credit-linked notes backed by financial guarantees
Basel III endgame: why moving fast might prove better for banks
Republicans are pushing for reproposal, but a rapid finalisation may prove less far-reaching
Isda pushes to ‘decouple’ Simm calibration from model changes
Emir 3.0 prompts effort to separate risk-weight revisions from methodology updates
Basel war on window-dressing may smooth liquidity, at a price
Changes to G-Sib charge could curb year-end repo volatility, but also cut balance sheet capacity
One year on, regulators still want a cure for bank runs
Broad support for higher outflow assumptions on uninsured deposits, but that won’t save insolvent banks
Watchlist and adverse media monitoring solutions 2024: market update and vendor landscape
This Chartis report updates Watchlist monitoring solutions 2022 and focuses on solutions for sanctions (name and transaction) screening and monitoring adverse media and its related elements
Most read
- Too soon to say good riddance to banks’ public enemy number one
- New FICC clearing model still holds fears for buy side
- Breaking out of the cells: banks’ long goodbye to spreadsheets