Regulation

The Australian Prudential Regulation Authority has appointed four new senior executives to its leadership team and created new units, as part of a “broader organisational restructure”.

Genworth Australia has posted mixed results for the three months to 31 March with CEO Georgette Nicholas flagging ongoing pressure in an environment of increased regulation.

Australian banks will be required to limit their exposures to unrelated counterparties to 25 per cent of Tier 1 Capital as APRA seeks to reduce "contagion risk".

The Treasurer has stressed that a housing affordability fix “must involve a scalpel, not a chainsaw” and has looked to the UK housing sector experience as “valuable” for Australia.

Treasurer Scott Morrison has announced the government’s endorsement of APRA’s decision to take on capital requirements in ensuring that the nation’s banks are “unquestionably strong”

While “credit positive” for banks, it “remains to be seen” how effective APRA and ASIC’s latest measures will be in moderating house price appreciation, according to the ratings agency

The outgoing chairman of the Australian Securities and Investments Commission has said that the commission is “troubled” by the recent surges in interest-only loans.

Morningstar has outlined the likely action APRA will take to curb investor lending after the impact of its initial efforts to cool the market appear to be fading.

Analysts expect further regulatory measures to curb investor lending will hurt LMI provider Genworth, which recently lost one of its largest clients.

Bank capital requirements will be APRA’s main policy focus for 2017, according to chairman Wayne Byres.