Wayne Byres, Chairman of the Australian Prudential Regulation Authority (APRA)
Remarks reported Via Reuters:
- Goal of prudential measures announced last week "not to determine house prices"
- Says it is a tactical response to current market conditions
- We can and do will more or less as conditions evolve
More:
- Should be able to assert, with credibility, that the banking system can withstand reasonably foreseeable adversity
- APRA won't delay introduction of "unquestionably strong" for finality on Basel
- Says to issue information paper on "unquestionably strong" capital requirements in middle of year
- Biggest issue in ensuring capital is appropriately allocated is whether and how we adjust the risk weights for housing-related exposures
- Says that should not be taken to imply that there will be a dramatic increase in capital requirements for housing lending
Says capital adequacy framework needs to address the concentration in housing lending that has built up in the banking system