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Australia's banking regulator flags new capital rules on loans
Add BT as a preferred sourcePublished Wed, Feb 14, 2018 · 09:50 PM
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Sydney
AUSTRALIA'S banking regulator proposed on Wednesday that the country's lenders adopt higher risk weightings on some kinds of loans as the government passed laws aimed at avoiding public bailouts of banks in a crisis.
The Australian Prudential Regulatory Authority (Apra) suggested higher risk-weightings on interest-only loans and investment loans. It proposed a lower risk weighting for loans with a lower loan-to-value ratio.
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