trending Market Intelligence /marketintelligence/en/news-insights/trending/z0VtawozLAcgeb7AHkfc3w2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

ANZ expects A$3B increase in capital requirement by July 2027

Blog

Banking Essentials Newsletter - February Edition, Part 2

Podcasts

StreetTalk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

Street Talk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

The Evolution of ESG Factors in Credit Risk Assessment: Environmental Issues


ANZ expects A$3B increase in capital requirement by July 2027

Australia & New Zealand Banking Group Ltd. expects an increase in common equity Tier 1 capital of about A$3 billion by July 2027 after the Reserve Bank of New Zealand imposed higher capital requirements for banks in the country.

ANZ said the increase in common equity Tier 1 capital includes a management buffer of about A$1 billion. ANZ's common equity Tier 1 ratio at Sept. 30 was 11.4%, or around A$3.5 billion above the Australian Prudential Regulation Authority's stated unquestionably strong level of 10.5%.

The impact is net of about NZ$1.5 billion of profits that ANZ Bank New Zealand Ltd. has retained in 2019.

The Reserve Bank of New Zealand is requiring the country's four largest banks by assets, including ANZ Bank New Zealand, to have total capital equal to 18% of risk-weighted assets, while the remaining smaller banks will need to have total capital equal to 16% of risk-weighted assets.

As of Dec. 17, US$1 was equivalent to NZ$1.52.