Fonterra returns as Dim Sum market goes multinational
The size and tenor of the second Dim Sum bond issued by Fonterra Co-operative Group (Fonterra) highlights the significant development in the market in recent years. This development, say intermediaries, means that the market is edging closer to participants being able to access Dim Sum liquidity for global funding purposes.
L-Bank Kangaroo return underlines AUD's global position
The coveted return of L-Bank to Kangaroo issuance highlights the importance of both domestic and international investors in the Australian market, say intermediaries. The deal also emphasises the position of the AUD as a global currency, thereby opening the door for other sectors and countries to consider the market.
APRA's Christmas present to big four banks: 1 per cent extra CET1 requirement [UPDATED]
The Australian Prudential Regulation Authority (APRA) published an information paper on December 23, laying out its framework for dealing with Australia's domestic systemically important banks (D-SIBs). Under this regime, D-SIBs will be subject to an extra 1 per cent common equity tier one (CET1) requirement as the local higher loss absorbency (HLA) treatment – which APRA says is "at the lower end of the range used elsewhere".
Responses to FSI consultation reveal Australian financial industry's wish list
Submissions made during the consultation period on the terms of reference for the Australian government's forthcoming financial system inquiry (FSI) give significant insights into the hopes and fears of different segments of the Australian financial services industry. Banking competition, productive allocation of superannuation fund assets and debt funding were mentioned repeatedly in the consultation, which closed in December 2013.
APRA drops NSFR content in final liquidity treatment
The Australian Prudential Regulation Authority (APRA) released its final position on the local interpretation of Basel III liquidity coverage ratio (LCR) rules on December 20. The new regime is little changed from that proposed by APRA in advance of its most recent consultation on the subject. But the regulator has fallen into line with the global regulatory calendar by temporarily shelving its planning on the net stable funding ratio (NSFR).