Digital Finance Analytics (DFA) Blog
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The additional capital requirements imposed on the big four by the Reserve Bank of New Zealand has seen analysts downgrade their forecasted return on equity across the major institutions. Via InvestorDaily. The Reserve Bank of New Zealand (RBNZ) has demanded the local arms of the big four raise their total capital ratio from a minimum … Continue reading “Higher NZ capital to drag banks’ ROE: Morningstar”
The Reserve Bank of New Zealand today released its final decisions following its comprehensive review of its capital framework for banks, known as the Capital Review. The trajectory will be over a longer period, with more flexibility, but the banks will still need to hold more capital. Governor Adrian Orr said the decisions to increase … Continue reading “RBNZ Imposes Higher Capital”
On 19 November, the US Federal Reserve, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation approved a final capital rule for the largest US banks that requires them to adopt the standardized approach for counterparty credit risk (SACCR). The rule must be adopted by those US banks which are mandated to use … Continue reading “US bank regulators lower capital requirements for the largest US banks”
APRA is proposing to adjust its capital requirements for authorised deposit-taking institutions (ADIs) to support the Government’s First Home Loan Deposit Scheme (FHLDS). The scheme aims to improve home ownership by first home buyers, through a Government guarantee of eligible mortgage loans for up to 15 per cent of the property purchase price. Recognising that … Continue reading “APRA Loosens Capital For FHLDS Loans”
The Australian Prudential Regulation Authority (APRA) has launched a review of the capital treatment of authorised deposit-taking institutions’ (ADIs’) investments in their banking and insurance subsidiaries. It is open for consultation until 31 January 2020. APRA intends to finalise the changes to the Prudential Standard in early 2020 with the updated Prudential Standard to come … Continue reading “APRA On Changes To Capital For NZ Subsidiaries”
In the first half of 2019 AMP posted a $2.3 billion shareholder loss due to a non-cash impairment to write down goodwill in Australian wealth management and legacy issues. Via InvestorDaily. The wealth giant has announced a $650 million fully underwritten capital raising which will enable it to set out on its new three-year transformational … Continue reading “AMP Announced $2.3 billion Loss And $650 million Capital Raising”
The Australian Prudential Regulation Authority (APRA) is applying additional capital requirements to three major banks to reflect higher operational risk identified in their risk governance self-assessments. APRA has written to ANZ, National Australia Bank (NAB) and Westpac advising of an increase in their minimum capital requirements of $500 million each. The capital add-ons will apply … Continue reading “APRA applies additional capital requirements to ANZ, NAB and Westpac”
The New Zealand Central Bank is steering a path quite different from the RBA with a move to lift bank capital to much higher levels, in the interests of protecting households and businesses in New Zealand. The costs, they say, are worth the benefits! Indeed the recent IMF report on NZ endorsed their approach. Australian … Continue reading “NZ Reserve Bank On Bank Capital”
We discuss the changes APRA is proposing on Bank capital ratios.
We discuss the changes APRA is proposing on Bank capital ratios.