basel 3Australia regulator resists pressure to ease tough new rules on balance sheet capital

The Australian Prudential Regulation Authority also plans to stick to its accelerated timetable for the introduction of the new rules from the start of next year.

”APRA is not intending to change its broad approach to the implementation of the Basel 3 reforms in Australia,” the regulator said last night in its response to a string of submissions from the industry.

The Basel 3 reforms are designed to raise the quality and quantity of regulatory capital held by banks, to make them safer. The aim is to enable banks to better absorb economic and financial shocks and to hold more liquid assets as well as generate more lending from their own deposits.

For the banks, however, the rules mean their profitability is likely to come under pressure.
Read more: Sydney Morning Herald