APRA eases funding rules
(29 September 2016 – Australia) Australia’s finance and banking regulator has provided the country’s biggest bank a reprieve, agreeing to revise a complex component of incoming global funding rules that could have caused lenders to seek out additional deposits.
The Australian Prudential Regulation Authority (APRA) released modifications to the proposed application of the net stable funding ratio requirements, following discussions with banks on how their “self-securitised” assets should be treated.
“Nevertheless, APRA’s expectation over the medium term is that authorised deposit-taking institutions will continue to strengthen the stable funding for their entire loan book, including the self-securitised portion,” APRA said in a state.
The NSFR is slated to begin in January 2018, affecting AMP, ANZ, Bendigo and Adelaide Bank, Bank of Queensland, Commonwealth Bank, Macquarie Group, National Australia Bank, Suncorp and Westpac.
Earlier this year, APRA stoked concerns by flagging that their self-securitised assets, such as mortgages, might not be deemed high-quality liquid assets for NSFR purposes, creating a funding hole.
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