APRA stands firm on inter-bank subordinated securitisation holdings
- Friday, 13 July 2012
Proposed changes to the Australian Prudential Regulation Authority (APRA)'s APS120 relating to the capital treatment banks' holdings of subordinated securitisation tranches have been left broadly unchanged following a consultation period. The regulator rejected suggestions that its existing powers are sufficient to deal with subordinated holdings, and that subordination be defined by ratings rather than position in a securitisation's capital structure.