ANZ 2022 Full Year Results
ANZ 2022 Full Year Results
BASEL III CET1 REFORMS AND TLAC FINALISATION
APRA CET1 reforms
•
Revisions to capital framework finalised in November 2021
•
Implementation on 1 January 2023
.
The reforms will result in changes to the calculation and presentation of
capital ratios
.
APRA has stated that these changes do not require banks to raise additional
capital
Updated minimum capital requirements, %
14.00%
18.25%
TLAC in
6.50%
form of
Tier 2
•
•
•
Minimum CET1 ratio 10.25% - which includes a baseline countercyclical
capital buffer (CCYB) of 1% of Australian assets that can be released in times
of systemic stress¹
Enhancing risk sensitivity in residential and commercial property portfolios.
Higher capital requirement segments such as interest only and investor
mortgages
72.5% output floor to limit the gap between Standardised and Advanced
ADIS
2.00%
APRA
minimum
increased from
1.50%
8.00% to
10.25%
1.50%
~1%
2.50%
1.00%
1.00%
3.75%
2.50%
.
Aligning RWA of New Zealand banking subsidiaries by applying a similar
framework to Reserve Bank of New Zealand
TLAC finalisation
•
APRA finalised TLAC requirements at 6.5% of RWA in the form of Tier 2
capital²
•
• Implementation on 1 January 2026
•
Interim target of 5% of RWA in the form of Tier 2 capital remains at 1 January
2024
4.50%
Current
4.50%
Basel III
Minimum Prudential Capital Requirement (PCR)
Capital Conservation Buffer (CCB)
Domestic Systematically Important Banks (D-SIBS)
Countercyclical Capital Buffer (CCyB)
Unquestionably Strong Buffer
AT1
Tier 2
1.
2.
The CCyB is calculated on a bank's Australian assets only. The final CCyB requirement will reduce based on a bank's international exposures
TLAC requirement of 6.5% is calibrated based on future RWA from APRA's Capital Reforms (effective January 2023) which is expected to be lower than current requirements. As a result, APRA noted the additional TLAC requirement of ~4.5% of RWA
under the new capital framework will in dollar terms equate to the lower end of APRA's previously announced TLAC range of 4-5% of RWA
105View entire presentation