On Friday, the Australian Prudential Regulatory Authority (APRA) issued a media release reaffirming that it would raise the banks’ average risk-weight on residential mortgages to 25%, as agreed following the Final Report of the Murray Financial System Inquiry (FSI):
The Australian Prudential Regulation Authority (APRA) has today reaffirmed its objective, announced in 2015, to raise Australian residential mortgage risk weights applied by banks using internal models to an average of at least 25 per cent.
