You are here

Australia bank regulator raises bank capital requirements for home loans

anz1.jpg
People walk past a branch of the Australia and New Zealand (ANZ) Banking Group in Sydney.

[SYDNEY] The Australian Prudential Regulatory Authority (APRA) will increase the amount of bank capital for residential mortgage loans, it said on Monday, a move aimed to strengthen the finances of the nation's largest lenders.

The average risk weight on home loan exposures will rise to at least 25 per cent, from 16 per cent currently. The measure will take effect on July 1, 2016, and apply to the nation's top banks. They include Australia and New Zealand Banking Group, Commonwealth Bank of Australia, Macquarie Bank, National Australia Bank and Westpac Banking Corporation.

REUTERS

sentifi.com

Market voices on:

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom