Australia to Keep Banks' Extra Capital Buffer at Zero for Now

Australia’s banking regulator said on Tuesday it had decided to keep the countercyclical capital buffer (CCyB) for banks on hold at zero percent, though it was considering setting a different rate in time. The Australian Prudential Regulation Authority (APRA) reviews the buffer quarterly and it has been held at zero since it started in 2016, Reuters reported. The buffer is an additional amount of capital that banks can be required to hold during periods of heightened systemic risk. “APRA will continue to closely monitor economic conditions, and will adjust the CCyB if future circumstances warrant it,” APRA said in a statement. Read more