Model ban adds A$375m to Australian securitisation capital
One bank - Westpac - sees 40% jump in size of charge
New rules on securitisations introduced by the Australian watchdog this year contributed to an added A$375 million ($284.45) in aggregate capital charges at the country’s four largest banks.
The Australian Prudential Regulation Authority (Apra) implemented APS 120, a new regime for capitalising securitisations, on January 1, which prevents dealers from using internal models to calculate their capital requirements.
As a result, securitisation capital charges grew significantly at Australia’s
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