Apra tier two push leaves Australia banks to count the cost

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By Tyler Davies
11 Jul 2019

Australia’s bank capital regulator has refused to back down from requiring the country’s largest banks to meet new loss-absorbing debt targets with tier two bonds, raising the prospect of a wave of supply over the next four years. The question now is: how much will it cost them? Tyler Davies reports.

Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of AustraliaNational Australia Bank and Westpac — Australia’s domestic systemically important banks (D-SIBs) — will have to increase their total capital ratios by a margin equal to 3% of their risk-weighted assets by January 2024, according to plans for the ...

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