Apra presses banks on global standards

Author: Ashley Lee | Published: 21 Jul 2015

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 lenders.

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...



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