Announcement

GENERAL: ANB: APRA confirms reduction in limits 12:02p.m. 
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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