Reserve Bank seeks feedback on raising capital requirements for home lending

Mon, 25 Mar 2013

By Paul McBeth March 26 (BusinessDesk) - The Reserve Bank is testing the waters for making lenders carry more capital cover on their balance sheets for high loan-to-value ratio mortgages, where it sees more risk to the country's financial system. The central bank is reviewing bank capital adequacy requirements for home loans, and sees a higher correlation in the local market with housing loan losses than international standards assumed by the Basel II capital adequacy regime. The Reserve Bank is seeking submissions on a consultation document...

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