Bulletin: ANZ Well Placed To Meet RBNZ Capital Rules With Internal Capital Generation

MELBOURNE (S&P Global Ratings) Dec. 6, 2019--S&P Global Ratings today said that Australia and New Zealand Banking Group Ltd. (ANZ) and the other major Australian banks are well placed to meet the new Reserve Bank of New Zealand's (RBNZ) capital framework announced yesterday without a need to issue new capital. RBNZ's new capital standards require the four major New Zealand banks to substantially increase their capital. Nevertheless, we expect that their parents (the four major Australian banking groups) should be able to achieve this through internal capital generation at the parent and the New Zealand banking subsidiary level on the back of their strong profitability and the seven-year transition period allowed by RBNZ. The final framework also allows the banks

...December 5, 2019 MELBOURNE (S&P Global Ratings) Dec. 6, 2019--S&P Global Ratings today said that Australia and New Zealand Banking Group Ltd. (ANZ) and the other major Australian banks are well placed to meet the new Reserve Bank of New Zealand's (RBNZ) capital framework announced yesterday without a need to issue new capital. RBNZ's new capital standards require the four major New Zealand banks to substantially increase their capital. Nevertheless, we expect that their parents (the four major Australian banking groups) should be able to achieve this through internal capital generation at the parent and the New Zealand banking subsidiary level on the back of their strong profitability and the seven-year transition period allowed by RBNZ. The final framework also allows the banks greater flexibility to issue Tier-1 hybrid instruments compared with RBNZ's previous proposal. RELATED RESEARCH - No Major Surprises In RBNZ's Final Capital Framework, Dec. 5, 2019 - RBNZ's Proposed Capital Increase...

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