ANZ Bank says it may be forced to ration capital allocated to New Zealand and retain a higher proportion of earnings in NZ after the prudential regulator slashed the ceiling on capital allocated to foreign subsidiaries.
The Australian Prudential Regulation Authority had been consulting on the capital changes for a year but the move threatens to escalate a trans-Tasman tit-for-tat over bank capital requirements.
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James Frost writes about banking, funds management and superannuation. Based in Melbourne, James has been reporting on specialist business and finance topics for 15 years. Connect with James on Twitter. Email James at james.frost@afr.com
