European Parliament Library

Bank Capital Adequacy in Australia, Niamh Sheridan, B. Jang

The paper finds that, given Australia's conservative approach in implementing the Basel II framework, Australian banks' headline capital ratios underestimate their capital strengths. Given their high capital quality and the progress in their funding profiles since the global financial crisis, the Australian banks are making good progress toward meeting the Basel III requirements, including the new liquidity standards. Stress tests calibrated on the Irish crisis experience show that the banks could withstand sizable shocks to their exposure to residential mortgages. However, combining residential mortgage shocks with corporate losses expected at the peak of the global financial crisis would put more pressure on Australian banks' capital. Therefore, it would be useful to consider the merits of higher capital requirements for systemically important domestic banks
Table Of Contents
Cover; Contents; I. Introduction; II. Features of the Australian Banking System; Figures; 1. Assets of Four Major Banks for Selected Countries, 2010; 2. Banking Sector Assets for Selected Countries; Tables; 1. Australia's Four Major Banks: Selected Financial Soundness Indicators; III. Basel II Implementation and Capital Ratios; 3. Bank Nonperforming Loans to Total Loans; 4. Bank Nonperforming Loans to Total Loans; 5. Indebted Households, 2009; 6. Total Short-Term External Debt; 7. Loss Given Default on Residential Mortgages; 8. Total Regulatory Capital Ratio, 2010
Literary Form
non fiction
At head of title: Asia and Pacific Department -- verso of t.p
Physical Description
1 online resource (22 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU