Reserve Bank sets capital ratios for lenders under new Basel III regime

Tue, 11 Dec 2012

Dec. 11 (BusinessDesk) - The Reserve Bank has settled on what it thinks are appropriate capital ratio requirements for the nation's lenders which are set to kick in from next month. The bank regulator hasn't moved on its view that banks should be holding a ratio of 4.5 percent of common equity Tier 1 capital in relation to their risk-weighted assets, a Tier 1 capital ratio of 6 percent and total capital ratio of 8 percent. The banks will also be limited in what they can do if they don’t hold a 2.5 percent equity buffer above those ratios....

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