Reported 17 days ago
Australia's banking regulator, APRA, is set to eliminate the market for Additional Tier 1 (AT1) capital instruments, becoming the first country to do so after the collapse of Credit Suisse. Despite concerns from investors, APRA believes AT1 bonds failed to stabilize banks during financial stress. The transition will involve replacing AT1 bonds with more reliable capital forms and is expected to finalize by the end of next year with a new framework effective January 2027.
Source: YAHOO