Financial Regulatory Forum

Australian banks would benefit from more capital – central banker

MELBOURNE, March 1 (Reuters) – Australian banks could do with a little more capital parked on their balance sheets even though they have weathered the global financial crisis in good shape, the country’s central bank chief said on Monday.

Reserve Bank of Australia Governor Glenn Stevens, appearing at a business conference, was responding to a question about controversial new bank-liquidity rules that have met with a cold reception from the country’s major lenders.

“It probably wouldn’t hurt for there to be a little more capital and more attention to liquidity,” Stevens said.

Australia’s prudential banking regulator has proposed new liquidity rules that would require local banks to park more of their money in high-quality assets such as government bonds, causing some banks to grumble that funding costs could rise.

Critics of the new rules point out that Australian banks came through the global financial crisis in good shape, albeit with the help of government guarantees on their wholesale funding.

Australia central bank raises rates, more expected

The Governor of the Reserve Bank of Australia (RBA), Glenn Stevens, pauses during an appearance before a parliamentary committee hearing in Sydney September 28, 2009.            REUTERS/Tim Wimborne   (AUSTRALIA BUSINESS POLITICS) By Wayne Cole
SYDNEY, Oct 6 (Reuters) – Australia’s central bank raised its key cash rate by 25 basis points to 3.25 percent on Tuesday and heralded more to come, saying it was safe to row-back on stimulus now that the worst danger for the economy had passed.