Regulation rebuffed
(16 November 2009 – Australia) Commonwealth Bank’s Chairman thinks that it is important not to follow a ‘one size fits all’ approach to the regulation of the Australia financial services organisations which, unlike their global peers have not failed.
The Australian Prudential Regulatory Authority (APRA) is currently discussing proposals for stricter capital and liquidity requirements.
Speaking from the group’s annual meeting in Perth, John Schubert, chairman, CBA, said that the financial year has been the most challenging he has seen. The continued fall-out from the subprime crisis, subsequent events and resultant negative economic growth in most western economies has placed significant pressure on the financial performance and survival of international banks.
Mr Schubert added that to overlay too much on top of Australia already relatively conservative settings to comply with every global initiative may not be helpful and could in fact have a negative impact on the economy and employment, particularly if it were to significantly increase costs or restrict the ability for Australian banks to support their customers and shareholders.
APRA's objective is to strengthen the resilience of authorised deposit-taking institutions (ADI’s) to liquidity risk and improve APRA's ability to assess and monitor ADIs' liquidity risk profiles.
John Laker, chairman, APRA said that the proposals represent the first round of consultation on a regime to build stronger liquidity buffers in our banking system.
Speaking from the group’s annual meeting in Perth, John Schubert, chairman, CBA, said that the financial year has been the most challenging he has seen. The continued fall-out from the subprime crisis, subsequent events and resultant negative economic growth in most western economies has placed significant pressure on the financial performance and survival of international banks.
Mr Schubert added that to overlay too much on top of Australia already relatively conservative settings to comply with every global initiative may not be helpful and could in fact have a negative impact on the economy and employment, particularly if it were to significantly increase costs or restrict the ability for Australian banks to support their customers and shareholders.
APRA's objective is to strengthen the resilience of authorised deposit-taking institutions (ADI’s) to liquidity risk and improve APRA's ability to assess and monitor ADIs' liquidity risk profiles.
John Laker, chairman, APRA said that the proposals represent the first round of consultation on a regime to build stronger liquidity buffers in our banking system.
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