ANZ
(ASX:ANZ) has today announced new risk weight floors will be applied to the New Zealand mortgage and farm lending portfolios for Level 2 reporting, following notification by the Australian Prudential Regulation Authority (APRA).
The move comes on the back of an increase in risk weights applied by the Reserve Bank of New Zealand (RBNZ) for these portfolios.
The impact is equivalent to a 20 basis point reduction in ANZ’s Level 2 Common Equity Tier 1 (CET1) capital ratio.
There is no impact on ANZ’s Level 1 capital ratio, and the higher risk weights for New Zealand were effectively incorporated into the Level 1 ratio as at 31 March 2019.
As of the 30th June 2019, ANZ’s Level 2 CET1 capital ratio was 11.8 per cent well in excess of APRA’s unquestionably strong requirement of 10.5 per cent.
Shares in ANZ
(ASX:ANZ) closed 0.64 per cent lower at $27.78 on Friday.
