IMF report backs Australian bank capital but suggests stress test tweaks
- Wednesday, 25 January 2012
An International Monetary Fund (IMF) working paper exploring the capital adequacy of Australian banks has acknowledged the strong position of the domestic majors. While the report also suggests Australian banks would be broadly resilient to a shock in the mortgage market larger than they are likely to experience, it also recommends consideration of even higher capital requirements for systemically-important local banks.
