Announcement
GENERAL: ANB: APRA confirms reduction in limits
12:02pm
ANB
20/08/2019 12:01
GENERAL
PRICE SENSITIVE
REL: 1201 HRS ANZ Bank New Zealand Limited
GENERAL: ANB: APRA confirms reduction in limits
NZX release
For release: 20 August 2019
APRA confirms reduction in limits on ADIs' related entities exposures
The Australian Prudential Regulation Authority (APRA) today confirmed it will
implement its previously announced proposal to reduce limits for Australian
ADIs' exposures to related entities, reducing limits from 50% of Level 1
Total capital to 25% of Level 1 Tier 1 capital.
Australia and New Zealand Banking Group Limited's (ANZ) exposure to ANZ Bank
New Zealand Limited (ANZ NZ) is impacted by this change. APRA's announcement
means, all else being equal, ANZ could have limited capacity to increase
exposures to ANZ NZ, although the final impact will be dependent on a number
of factors, including the size and composition of ANZ's and ANZ NZ's balance
sheets at the time of implementation.
While the change announced today is effective January 2021, ANZ NZ notes
APRA's statement that they are open to providing entity-specific transitional
arrangements or flexibility on a case by case basis. ANZ NZ expects this
flexibility could include the timeframe available and the circumstances under
which an exemption may be available, such as periods of funding market
disruption.
As a result of the change, ANZ NZ may be required to retain a higher
proportion of its earnings to meet any increased capital requirements.
For media enquiries contact:
Peter Parussini
+ 64 27 484 3230
End CA:00339440 For:ANB Type:GENERAL Time:2019-08-20 12:02:19
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