S&P says RBNZ bank capital proposals will 'burden' Australian-owned banks

Mon, 25 Feb 2019

By Jenny Ruth Feb. 25 (BusinessDesk) - Another international ratings agency, Standard & Poor’s, has weighed in to call the Reserve Bank’s proposed new bank capital requirements a “burden” on the Australian parents of New Zealand’s four major banks. The higher capital requirements for the Australian-owned banks, which include almost doubling tier 1 capital from 8.5 percent of risk-weighted assets currently to 16 percent, “could create significant imposts for their Australian parents,” S&P says. “We estimate that the higher Tier 1 capita...

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