Investor Presentaiton
MyState
Sub Debt Issue | Investor Presentation 37
Limited
Capital management approach
Capital is managed under the Board approved ICAAP framework pursuant to APS 110. Capital is monitored
on three levels:
.
•
Regulatory Capital (APRA Approach)
Rating Agency Capital (Moody's Approach)
Economic Capital (Internal Risk Management Approach)
MyState's current capital plan is for capital adequacy to be managed within the Board approved risk appetite
over the 3 year ICAAP forecast period.
The capital forecast is based on budget lending and RWA growth, capital expenditure and expected capital
management activities and is reported to ALCO and the Board on a monthly basis. Risks to the capital
forecast and potential capital actions are discussed at both ALCO and Board.
Stress testing of capital is undertaken quarterly as part of the enterprise wide stress testing framework,
ICAAP and Recovery Plan processes to assess the business' capacity to withstand and recover from
significant shocks.
Organic capital generation, warehouse securitisation and term RMBS are the primary form of capital
generation for the Group, supplemented by use of the Dividend Reinvestment Plan and DRP underwrites as
appropriate.View entire presentation