The Australian Prudential Regulation Authority (APRA) has told local banks they do not have to raise yet more capital to meet global rules, which is a relief to those already facing stricter standards. The regulator did have the option under Wayne Byres rules that required banks to build a "countercyclical capital buffer" of up to 2.5% of risk-weighted assets, however, the APRA chose to set the buffer at zero. S&P's analyst, Nico DeLange, said the move by APRA did nothing to challenge the agency's assessment of the bank's capital position, stating "they are adequate".
The Australian Prudential Regulation Authority (APRA) has told local banks they do not have to raise yet more capital to meet global rules, which is a relief to those already facing stricter standards. The regulator did have the option under Basel III rules that required banks to build a "countercyclical capital buffer" of up to 2.5% of risk-weighted assets, however, the APRA chose to set the buffer at zero. S&P's analyst, Nico DeLange, said the move by APRA did nothing to challenge the agency's assessment of the bank's capital position, stating "they are adequate".