As expected:
This Information Paper sets out the Australian Prudential Regulation Authority’s (APRA’s) conclusions with respect to the quantum of additional capital that might reasonably be expected to be required for the Australian banking sector to have capital ratios that are considered ‘unquestionably strong’.
Reflecting the social and economic cost of the global financial crisis, strengthened bank capital requirements have been at the core of the post-financial crisis international reforms. APRA implemented the first wave of these international reforms ahead of, and to a higher standard than was feasible in, many other countries, and has continued to strengthen the prudential framework in a number of other areas. This approach has not hindered the Australian banking system’s ability to support economic activity, and indeed Australia has benefitted from maintaining a robust and well-capitalised banking sector.
