{"id":2556,"date":"2014-12-07T08:48:39","date_gmt":"2014-12-07T13:48:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2556"},"modified":"2014-12-07T08:48:39","modified_gmt":"2014-12-07T13:48:39","slug":"australian-banks-seen-needing-25-billion-in-capital-bloomberg","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2556","title":{"rendered":"Australian Banks Seen Needing $25 Billion in Capital – Bloomberg"},"content":{"rendered":"

Australian Banks Seen Needing $25 Billion in Capital – Bloomberg<\/a>.<\/p>\n

Commonwealth Bank of Australia<\/a>\u00a0and its three main competitors may need as much as A$30 billion ($25 billion) after a government-commissioned inquiry called for \u201cunquestionably strong\u201d capital levels, analysts said.<\/p>\n

The shortfall is based on lenders needing to boost levels to within the top quartile of their global peers and set aside additional funds against potential losses on home mortgages, as recommended by the Financial System Inquiry report released yesterday in Sydney by Treasurer\u00a0Joe Hockey<\/a>.<\/p>\n

Australia\u2019s major lenders hold about 10 percent to 11.6 percent of their assets as\u00a0Tier 1 capital<\/a>\u00a0compared with at least 12.2 percent at the world\u2019s safest banks, the government\u2019s first inquiry into the financial system since 1997 said. Banks should be strong enough to withstand shocks, particularly given their reliance on overseas investors for funding, the report said.<\/p>\n

\u201cThe onus on capital is in line with global changes and Australia has to fall in line,\u201d John Buonaccorsi, a Sydney-based analyst at CIMB Group Holdings Bhd. said in a phone interview after the report was released. \u201cI don\u2019t expect a straight capital raising yet.\u201d<\/p>\n

Australia<\/a>\u2019s largest banks are initially more likely to resort to dividend reinvestment plans, where investors swap all or part of their dividend for new shares, and limiting increases in payout ratios, he added.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Australian Banks Seen Needing $25 Billion in Capital – Bloomberg. Commonwealth Bank of Australia\u00a0and its three main competitors may need as much as A$30 billion ($25 billion) after a government-commissioned inquiry called for \u201cunquestionably strong\u201d capital levels, analysts said. The shortfall is based on lenders needing to boost levels to within the top quartile of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,63,1708,1707],"class_list":["post-2556","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-banks","tag-fractional-reserve-banking","tag-tier-1-capital"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2556"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2556\/revisions"}],"predecessor-version":[{"id":2557,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2556\/revisions\/2557"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}