Pathetic APRA declares war on depositors

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By Leith van Onselen

The Australian Prudential Regulatory Authority (APRA) has taken regulatory capture to a whole new level, lowering the “stable funding” factor on self-securitised assets from 65%-100% to 10%, thus lessening competition for deposits. From The Australian:

…the Australian Prudential Regulation Authority yesterday revealed it had yielded to the banks’ requests about how their “self-securitised” assets should be treated…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.