SMS Finance

APRA proposes major changes to the future of bank capital structures

Nicholas Chaplin, Director & Portfolio Manager of Seed Funds Management, critiques APRA’s proposal to phase out Additional Tier 1 (AT1) bonds, suggesting it could undermine the stability of Australian banks and leave retail investors exposed. 

Topics discussed include:
APRA’s proposalCurrent issues with AT1 instrumentsThe Australian contextTransition timelineImpact on banks, large and smallImpact on banking stabilityImpact on retail investorsAlternative solutionsMarket reaction

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