From the AFR‘s little banking event today comes the following from John Laker, head of APRA:
1.11 pm: Commenting on some of the items on the regulator’s agenda, Laker says APRA’s focus includes keeping credit quality standards in place and keeping a close eye on liquidity levels, among others.
We will be talking to the institutions about their funding profile particularly around offshore markets, and overseas expansion plans, Laker says.
1.07 pm:The date of the Basel 3 timetable won’t change in Australia, Laker says, when asked about talks of delays regarding implementation dates in the US.
“Our institutions have passed the first milestone around incoming regulatory changes,” he says. “I find it impossible to understand what it means to differ,” he says of the implementation date next year.
1 pm: Cornell goes straight to the point in his first question with Laker asking: “Is the banking system here properly capitalised?”
The IMF report didn’t say the banking sector here is under capitalised, Laker points out. The sector here is well endorsed by the IMF. There are long-standing structural issues such as the housing problems, but there’s nothing that points to a “clear and present danger” to the big banks here.
Just a structural one.
