APRA lifts bank capital buffers to protect savers
The prudential regulator will strengthen its ability to safely resolve a future banking crisis, calling for banks to lift their “total loss absorbing capital” buffers by half to 4.5 per cent, to ensure depositors are protected should a bank looks like it might fail.
Bank debt issuance will rise on the back of the higher buffer, announced by the prudential regulator on Thursday morning. Banks will have four years to build the reserves, with the new settings coming into force on January 1, 2026.
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