NAB revises internal CET1 target but remains confident on implementation
National Australia Bank (NAB) reiterated that its capital position is comfortable at its May 8 half-year results announcement, despite a clutch of recent regulatory moves which add to the capital burden of the bank and its peers. NAB also updated its internal common equity tier-one (CET1) target, setting its goal at 0.75-1.25 per cent above the new regulatory minimum for domestic systemically important (D-SIB) banks.
Federal budget looms as RBA satisfied with OCR at 2.5 per cent
The Reserve Bank of Australia (RBA) kept the official cash rate (OCR) on hold – at 2.5 per cent – at its monetary policy committee (MPC) meeting on May 6, to the unanimous expectation of analysts and markets alike. Some analysts say that, as the final rate decision ahead of the 2014-15 federal budget on May 13, the May RBA statement – and decision – implies a central bank that is as satisfied as it can be with the level of policy.
APRA to consult twice more on APS 120 with implementation now set for 2016
The Australian Prudential Regulation Authority (APRA) opened a consultation period on its latest proposals for a simplified Australian securitisation regime on April 29. The regulator revealed at the same time that it plans to consult the market on the regime again in 2015 and is targeting implementation in 2016.
NCA proposals could reform the federation
Among the 86 key recommendations in the final report of the National Commission of Audit (NCA) on Australia's fiscal position, released on May 1, are five addressing the fiscal imbalances that exist in the current Commonwealth-state relationship. Some analysts believe these recommendations, if adopted, have the potential to radically change the financial relationship between Australia's central and regional government – and thus related capital markets.
NZ opposition proposes compulsory KiwiSaver contributions [UPDATED]
New Zealand's opposition Labour Party proposed a raft of new economic measures on April 29, including changes to the KiwiSaver savings scheme to make it – like its Australian equivalent – compulsory for paid employees. The system currently operates on a voluntary opt-in basis, and KiwiSaver data says just fewer than 2.3 million New Zealanders, or roughly half the population, were members by March this year.