Money: APRA wants big banks to increase capital buffers to improve 'loss-absorbing capacity' - PressFrom - Australia
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MoneyAPRA wants big banks to increase capital buffers to improve 'loss-absorbing capacity'

23:32  08 november  2018
23:32  08 november  2018 Source:   businessinsider.com.au

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Banking regulator APRA has announced a proposal to increase minimum capital requirements for the big banks . Banks will be free to raise the capital in any way they choose. As part of the composition of each bank ’s Total Capital requirements, APRA said it expects the bulk of the funds to be raised via NAB also released a brief statement following APRA ’s announcement

APRA has announced a proposal that will require the big Australian banks to further increase their Where to now for the big four banks , AMP and some other big businesses? They’ve abused the Although companies that suffer a loss of trust often blame “rogue employees” or “a few bad apples Apple finds quality problems in some iPhone X and MacBook

APRA wants big banks to increase capital buffers to improve 'loss-absorbing capacity'© Getty Gary Friedman/ Los Angeles Times via Getty Images Banking regulator APRA has announced a proposal to increase minimum capital requirements for the big banks.

The measures are aimed at improving the "loss-absorbing capacity" of Australia's financial institutions, within their existing capital structure.

Based on current prices, APRA said the changes will increase the cost of funding for the big four by around 5 basis points (0.05%). The increase will be absorbed incrementally over a four year period, starting in 2019.

"This is not expected to have an immediate or material effect on lending rates," APRA said.

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APRA has announced a proposal that will require the big Australian banks to further increase their capital buffers . Greece May Free Its Banks From The Greek lenders’ tax claims currently account for most of their capital . As claims against the state, they were granted to offset losses suffered The Bank of Greece plan has been submitted to the

APRA has announced a proposal that will require the big Australian banks to further increase their capital buffers . The shake-up would increase competition against the big four banks which account for more than 80 per cent of business loans of less than million and charge an interest rate National Australia Bank , Commonwealth Bank of Australia and HSBC are

Banks will be free to raise the capital in any way they choose. As part of the composition of each bank's Total Capital requirements, APRA said it expects the bulk of the funds to be raised via Tier 2 capital.

For the big four banks, the move is expected to increase TCR by "four to five percentage points of risk-weighted assets (RWA)".

APRA wants big banks to increase capital buffers to improve 'loss-absorbing capacity'© Supplied Source: APRA

For smaller lenders, APRA said there's likely to be no adjustment.

“The aim of these proposals -- and resolution planning more broadly -- is to ensure that the failure of a financial institution can be resolved in an orderly fashion, which protects the interests of beneficiaries and minimises disruption to the financial system,” APRA chairman Wayne Byres said.

The proposals have been released in the form of a discussion paper, and APRA is now seeking feedback from industry stakeholders.

Shares in the big banks were slightly higher this morning, led by ANZ which posted an early gain of 1%.

The exception was NAB, was fell by around 4% after going ex-dividend. NAB also released a brief statement following APRA's announcement this morning.

"Based on NAB’s RWA of $390 billion at September 30 2018, this represents an incremental increase of $16-$19 billion of Total Capital, with a corresponding decrease in senior debt issuance," NAB said.

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