ANZ Banking Group
(ASX:ANZ) says its Level 2 Common Equity Tier 1 ratio is expected to decrease by 26 basis points, following changes brought down by the Australian Prudential Regulation Authority (APRA).
The bank says the APRA change will increase its Australian residential lending book, and an average risk weight of over 28.5 per cent will be applied to ANZ’s Australian mortgage portfolio.
It comes as APRA had been reviewing ANZ’s mortgage capital model since August 2016, and today approved the new mortgage model to be adopted from June 2017.
Despite the change, ANZ says the impact is consistent with its 2017 capital management plan.
The group also expects APRA will make further changes to sector capital management requirements.
Shares in ANZ Banking Group
(ASX:ANZ) are trading 0.29 per cent lower to $27.93.
