Basel III has strong opposition with ANZ
(19 September 2011 – Australia) ANZ is leading the charge against rule changes known as the Basel III, part of a global push following the financial crisis.
ANZ chief executive Mike Smith has been rallying against the tough new rules which are expected to hit the bank hard as it expands further into Asia, compared to banks with a greater focus on the domestic market.
The rules are intended to improve banks' ability to absorb economic and financial shocks by forcing them to hold more capital and higher-quality assets on their balance sheets.
Speaking to reporters in Mumbai, India last week Mr Smith called on countries like China, India, Canada and Australia to band together and ‘‘push back’’ on Basel III given their banking systems didn’t suffer the same problems as what unfolded across North America or Europe.
He labelled the Basel III measures as a ‘‘political response’’ to the global banking crisis of three years ago, adding there were dangers in too much heavy-handed regulation of banks.
‘‘What is appropriate for France or Germany or the UK, or the US, is not necessarily relevant to us,’’ Mr Smith said. He was talking during the telephone hook-up for the launch of ANZ’s new Indian institutional business.
Earlier this month the Australian Prudential Regulation Authority outlined plans to bring forward its timetable for the introduction of Basel III here. However, analysts have said the regulator’s interpretation of the rules were not as bad as some had feared.
APRA has said all of Australia’s banks are well positioned to meet the new minimum capital requirements, including the 7 percent capital conservation buffer by the start of 2016. The rules are expected to be fully in place by 2019.
The rules are intended to improve banks' ability to absorb economic and financial shocks by forcing them to hold more capital and higher-quality assets on their balance sheets.
Speaking to reporters in Mumbai, India last week Mr Smith called on countries like China, India, Canada and Australia to band together and ‘‘push back’’ on Basel III given their banking systems didn’t suffer the same problems as what unfolded across North America or Europe.
He labelled the Basel III measures as a ‘‘political response’’ to the global banking crisis of three years ago, adding there were dangers in too much heavy-handed regulation of banks.
‘‘What is appropriate for France or Germany or the UK, or the US, is not necessarily relevant to us,’’ Mr Smith said. He was talking during the telephone hook-up for the launch of ANZ’s new Indian institutional business.
Earlier this month the Australian Prudential Regulation Authority outlined plans to bring forward its timetable for the introduction of Basel III here. However, analysts have said the regulator’s interpretation of the rules were not as bad as some had feared.
APRA has said all of Australia’s banks are well positioned to meet the new minimum capital requirements, including the 7 percent capital conservation buffer by the start of 2016. The rules are expected to be fully in place by 2019.
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