Reported about 1 month ago
Australia's banking regulator, APRA, has proposed phasing out additional tier 1 (AT1) bonds, following their collapse during the Credit Suisse crisis. The changes aim to enhance financial stability, facilitate simpler resolutions during bank crises, and boost deposit safety confidence. The transition is set to begin in 2027, with an expectation of complete replacement by 2032. This move arises from lessons learned during last year’s banking turmoil, as the complexities of AT1 securities failed to effectively stabilize banks in times of trouble.
Source: YAHOO