Big four banks face stiffer capital requirements from RBNZ

By Paul McBeth
Dec. 14 (BusinessDesk) - The big four Australian-owned banks will have to hold on to more of their domestic earnings over the next five years if the Reserve Bank goes ahead with its proposal for stricter capital requirements.
The central bank, which issued a consultation paper today, wants lenders to hold more higher-quality capital on their books to help fund their credit, rather than using borrowed money. It also plans to limit the big four banks' internal models that have led to lower capital requirements, giving them a...
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