The Australian Prudential Regulation Authority (APRA) has suggested lenders increase domestic capital levels after New Zealand proposed a hike in capital ratios. APRA said the move would help to prevent banks from becoming "too big for their boots". APRA, which wants to limit banks' exposure to a single business unit to 10%, said Australian customers could lack protection if more cash was invested overseas.
The Australian Prudential Regulation Authority (APRA) has suggested lenders increase domestic capital levels after New Zealand proposed a hike in capital ratios. The latter move would see banks needing to raise NZD$20bn ($12.6bn) in the next five years. APRA, which wants to limit banks' exposure to a single business unit to 10%, said Australian customers could lack protection if more cash was invested overseas.