Captured APRA waters down bank capital framework

The Australian Prudential Regulatory Authority (APRA) has caved-in yet again, delaying proposed bank capital reforms:

The big four banks will have longer than expected to raise extra capital to absorb potential losses after the prudential regulator amended its proposed framework for minimising the fallout from failed institutions.

The Australian Prudential Regulation Authority on Tuesday said the majors had to lift total capital by three percentage points of risk-weighted assets by 2024, putting away what the regulator estimates will be another $50 billion to minimise the need for taxpayer funds should they collapse.

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