The Australian Prudential Regulatory Authority
(Apra) has warned banks that they need to raise more capital as
well as hiking mortgage risk ratings for the biggest
Apra is known to be one of the world’s
most proactive prudential regulators, largely down to the
disproportionate dominance of Australia’s biggest
banks within the country’s domestic market.
Despite the banks not being designated as global
systemically important financial institutions (G-Sifis), the Financial Services Inquiry (FSI) has concluded
they need to be 'unquestionably strong’.
The regulator was one of the first to implement
Basel III’s capital requirements, insisting that
authorised deposit-taking institutions (ADIs) comply years
ahead of schedule. And it continues to follow global cues to
strengthen its banks, including taking a lead on the so-called
Basel IV, a move to standardise how lenders
calculate credit risk and regulatory capital.
In the past week, Apra released its report on...