Australian prudential regulator winds back capital requirements call on
I just posted on this (3 sources of stimulus for the Australian economy and thus supportive of the AUD)
Crossing the 'i's and dotting the 't's - this in this morning from the Australian Prudential Regulation Authority (APRA):
- APRA released a discussion paper in November last year proposing that the four major Australian banks be required to increase their Total Capital by four to five percentage points of risk weighted assets (RWA) over four years.
But, the APRA decision is in and its not going that far:
- APRA will require the major banks to lift Total Capital by three percentage points of RWA by 1 January 2024.
In a nutshell the implication is this is less onerous on the banks and thus less credit restrictive. While the phase in is out to 2024 I think for short term AUD traders its not of that much relevance, but at the margin it is AUD supportive so just providing an update.