The Australian bank regulators push for
faster Basel III implementation could leave domestic banks less
Australian Prudential Regulation Authority (APRA)
last week proposed the Basel III timeline be accelerated by two
years for authorised deposit-taking institutions (ADIs).
The move would see Australias banks required
to meet a 4.5% minimum core capital requirement from 2013 and
capital conservation standards - an additional layer of 2.5%
common equity tier one capital below which capital conservation
measures will apply - by January 2016.
Under the Basel III timeline, banks have until
January 2015 to introduce the minimum capital requirement and
Q4 2018 to meet the capital conservation buffer.
In a discussion paper released
in conjunction with the announcement, the regulator said the
Basel III timeline could be sped up because Australian ADIs
were adequately capitalised to meet requirements. Moodys
ratified that judgment.