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APRA Holds Countercyclical Capital Buffer At 0%

AUSTRALIA

The Australian Prudential Regulation Authority (APRA) has today released its latest assessment of the appropriate setting for the countercyclical capital buffer (CCyB) for authorised deposit-taking institutions (ADIs).

  • The CCyB is an additional amount of capital that APRA can require ADIs to hold at certain points in the economic cycle to bolster the resilience of the banking sector during periods of heightened systemic risk. It has been set at zero per cent of risk-weighted assets since it was introduced in 2016.
  • In its annual information paper on the CCyB, APRA today confirmed it considers that a zero per cent CCyB remains appropriate at this point in time based on an assessment of the systemic risk environment for ADIs.
  • Click here for full release.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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