Banks will need to raise even more capital, says Fitch

Fitch said today a further increase in capital by Australia’s four largest banks was likely over the medium term, despite the Australian Prudential Regulation Authority’s recent rule change requiring the lenders to increase their minimum average mortgage risk-weights to at least 25 per cent by July next year, up from the current position of around 16 to 18 per cent............
http://www.theaustralian.com.au/bus...pital-says-fitch/story-fn91wd6x-1227488621897

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Sounds like more tightening of credit coming soon? Always thought our banks were pretty good at conforming to Basel standards. It seems banks will have to do more capital raising or reduce their loan growth to maintain their AAA ratings.

 

Goal posts on wheels.

 

http://download.asic.gov.au/media/3329474/rep445-published-20-august-2015.pdf