12 May 2015
Bank capital a focus but what about liquidity?
Andrew Cornell |
The focus during the Australian bank profit reporting season was, not unexpectedly, on capital. The amount needed, by when and for what.
12 Jun 2015
How the banks will be made to hold more capital
The next step by Australian regulators to encourage banks to hold more capital is likely to come in the form of changes to mortgage risk weighting, according to ANZ's chief financial officer.
"Our bet would be that it's more likely to come in terms of some changes to the way mortgage risk weightings are calculated."
Speaking exclusively to BlueNotes on video, Shayne Elliott said regulators would be keen to create an orderly transition to more capital-heavy banks and therefore would look to give the sector a chance to do so in an organic and sensible fashion.
“Right now our bet would be it's more likely to come in terms of some changes to the way mortgage-risk weightings are calculated rather than a general application," he said.
Capital has been the biggest point of interest among analysts and investors since Australia's interim bank results season, Elliott said, adding a number of unknowns still remained.
“As of today we don't know exactly how much capital we are going to be asked to hold by the regulators, we don't have a perfect answer. We know what we think it might be, we don't have a very good answer," he said.
“We don't know by when, so we don't know what the timetable is, so we don't know how quickly we're going to get there, and we're not sure in which form it's gonna come."
Elliott also touches on the investor reaction to ANZ's interim numbers and the big sell off in Australian bank shares. Watch the video above to find out more.
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
editor's picks
20 Jan 2015
Murray stepped back on bank capital but Basel has stepped up
Andrew Cornell |
Looking at the top 10 stocks on the Australian stock exchange, the dominant role played by the Big Four banks in equity portfolios is clear. The top two stocks are banks: Commonwealth Bank and Westpac Banking Corp. In positions four and five are ANZ Banking Group and National Australia Bank.