Dec 9 (Reuters) - Australian Prudential (LON:PRU) Regulation Authority:
* RESPONDS TO SUBMISSIONS ON THE CAPITAL TREATMENT OF FIRST HOME LOAN DEPOSIT SCHEME MORTGAGES
* TO PERMIT AUTHORISED DEPOSIT TAKING INSTITUTIONS USING STANDARDISED APPROACH TO CREDIT RISK TO APPLY LOWER CAPITAL NEED TO ELIGIBLE MORTGAGES
* NOT PROPOSING ADJUSTMENTS TO INTERNAL RATINGS-BASED CAPITAL REQUIREMENTS FOR FHLDS MORTGAGES