APRA Issues Fresh Guidance For Capital Management At Banks & Insurers

The APRA has indicated that for the remainder of the calendar year boards
of banks and insurers should:

• seek to retain at least half of their earnings when making decisions
  on capital distributions (and utilise dividend reinvestment plans and
  other initiatives to offset the diminution in capital from capital
  distributions where possible);
• conduct regular stress testing to inform decision-making and
  demonstrate ongoing lending capacity; and
• make use of capital buffers to absorb the impacts of stress, and
  continue to lend to support households and businesses.
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