Tags » Australia & NZ

APRA confirms further capital adequacy measures

From Robin Christie:

The Australian Prudential Regulation Authority (APRA) has confirmed that the country’s largest banks will face increased capital adequacy requirements for residential mortgage exposures – and hasn’t ruled out further rises.

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Australia & NZ

Why negative gearing is not a fair tax policy

Interesting view from Antony Ting, Associate Professor at University of Sydney:

Is negative gearing in accordance with well-established tax rules? A fundamental principle in the tax law is that a taxpayer should be able to deduct expenses only if the expenses have been incurred to generate assessable income.

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Australia & NZ

Could a new property tax save the economy?

Interesting article by Robin Christie | 16 Jul 2015

Property levies could be the key to fixing state and territory budgets, and could raise as much as $7 billion a year, the Grattan Institute has claimed.

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Australia & NZ

Bank share prices tipped to decline

Chris Joye at the AFR warns that increased capital requirements could cause an 18.5 percent fall in bank stocks:

….APRA warns that because the report makes several assumptions that are unrealistically favourable to the majors, and the majors’ CET1 ratios have fallen behind global peers since June 2014, it believes they “are likely to need to increase their capital ratios by at least 200 basis points … to be comfortably positioned in the fourth quartile”.

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Australia & NZ

APRA considers two per cent capital adequacy increase

by Robin Christie | 14 Jul 2015

The Australian Prudential Regulation Authority (APRA) has stated that the major banks would need to increase their capital adequacy ratios by at least two per cent to meet Financial System Inquiry (FSI) recommendations.

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Australia & NZ

Australia: Rising foreign debt

The most worrying aspect of rising Australian debt is that most of it is coming from offshore.

Domestic borrowing is fairly benign, but an increase in international liabilities suggests the country is living beyond its means. Has been for a while.

Australia & NZ

RBA strategy: Fight fire with gasoline

This is just plain wrong.

The Australian economy is sitting atop an enormous housing bubble caused by credit expansion from 1995 to 2007. To counter the end of the mining boom, the RBA lowered interest rates to stimulate the economy. 88 more words

Australia & NZ