Aussie banks face 100bps increase in Tier-1 capital

The aim is for them to be 'unquestionably strong'.

Bloomberg reports that Australia’s biggest banks will have to hold more capital under fresh guidelines from the prudential regulator aimed at ensuring the institutions are “unquestionably strong.’’

"The four major banks -- Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, Westpac Banking Corp., and National Australia Bank Ltd. -- will need to have tier-1 capital ratios of at least 10.5 percent by Jan. 1, 2020, the Australian Prudential Regulatory Authority said in a statement Wednesday. The average across the banks in 2016 was 9.85 percent, according to Morgan Stanley calculations," adds Bloomberg.

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