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BRIEF-APRA To Review ADI Investments In Banking And Insurance Units

Published 15/10/2019, 12:01 pm
© Reuters.  BRIEF-APRA To Review ADI Investments In Banking And Insurance Units
PRU
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Oct 15 (Reuters) - Australian Prudential (LON:PRU) Regulation Authority:

* LAUNCHED REVIEW OF CAPITAL TREATMENT OF AUTHORISED DEPOSIT-TAKING INSTITUTIONS' INVESTMENTS IN THEIR BANKING AND INSURANCE UNITS

* PROPOSALS TO IN EFFECT INCREASE AMOUNT OF EQUITY REQUIRED TO SUPPORT INVESTMENTS IN LARGE SUBSIDIARIES & REDUCE THAT FOR SMALL UNITS

* ESTIMATES THAT NO MATERIAL ADDITIONAL CAPITAL WILL BE REQUIRED AT AN AGGREGATE INDUSTRY LEVEL

* INDIVIDUAL ADIS MAY NEED TO RAISE CAPITAL, OR MAY GAIN A CAPITAL BENEFIT, DEPENDING ON THE LEVEL OF THEIR EXPOSURES TO SUBSIDIARIES

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