It seems that the royal commission was overdue after the series of findings which keep the Australian public intrigued. As a result, the Australian Prudential Regulation Authority has indicated its intention to lift capital benchmarks which will in turn increase costs to banks and their shareholders, according to mortgagebusiness.
IBIS World senior industry analyst Tommy Wu remarked:
““The Australian Prudential Regulation Authority (APRA) has already announced its intention to raise capital benchmarks to unquestionably strong levels, with banks expected to meet these levels by 1 January 2020. This already represents a significant cost to the major banks and their shareholders,” Mr Wu said.
“The Commonwealth Bank (CBA) will be particularly under pressure, with APRA slapping an extra $1 billion capital charge on the bank following the prudential inquiry into the bank. This charge will remain until the inquiry’s recommendations are met. This potentially puts CBA in the weakest capital position of the major banks,” said Mr Wu.“
This quote/excerpt & article was sourced from mortgagebusiness. For full article, click here.