{"id":7410,"date":"2013-04-07T01:01:37","date_gmt":"2013-04-07T05:01:37","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=7410"},"modified":"2013-04-07T01:01:37","modified_gmt":"2013-04-07T05:01:37","slug":"lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/","title":{"rendered":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica"},"content":{"rendered":"<p>Jesse Eisinger&#8217;s interview with risk specialist John Breit highlights an issue facing Australian banks. Residential mortgages are allocated a low risk weighting &#8212; 15% to 17% because of historic performance &#8212; compared to 50% for US banks. The big four banks piled into this area because of the perceived low risk, leveraging up to 50 times capital. Risk-weighted capital ratios (around 10%) still appear healthy, but they conceal a hidden danger from the resulting housing bubble.<\/p>\n<blockquote>\n<p>[Breit] despises the concept of &#8220;risk-weighted assets,&#8221; where banks put up capital based on the perceived riskiness of the assets. Inevitably, he argues, banks will &#8220;pile into&#8221; the same types of supposedly safe investments, creating bubbles that make the risks far more severe than the initial perceptions. Paradoxically, risk-weighting can leave banks setting aside the least capital to cover the biggest dangers.<\/p>\n<p>&#8220;I could not be more disappointed,&#8221; he said. &#8220;The cynic in me thinks this is all in the interests of senior management and regulators to avoid blame. They may not think they can prevent the next crisis, but they then can blame the statistics.&#8221;<\/p>\n<\/blockquote>\n<p>Read more at <a href='http:\/\/www.propublica.org\/thetrade\/item\/why-risk-managers-should-be-spymasters'>Why Risk Managers Should Be Spymasters &#8211; ProPublica<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jesse Eisinger&#8217;s interview with risk specialist John Breit highlights an issue facing Australian banks. Residential mortgages are allocated a low risk weighting &#8212; 15% to 17% because of historic performance &#8212; compared to 50% for US banks. The big four banks piled into this area because of the perceived low risk, leveraging up to 50 &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,31],"tags":[381,590,2089,2974],"class_list":["post-7410","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-the-fed-banks-interest-rates","tag-banks","tag-capital-ratios","tag-leverage","tag-risk-weighting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Jesse Eisinger&#8217;s interview with risk specialist John Breit highlights an issue facing Australian banks. Residential mortgages are allocated a low risk weighting &#8212; 15% to 17% because of historic performance &#8212; compared to 50% for US banks. The big four banks piled into this area because of the perceived low risk, leveraging up to 50 &hellip; Continue reading &quot;Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2013-04-07T05:01:37+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica\",\"datePublished\":\"2013-04-07T05:01:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/\"},\"wordCount\":199,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"banks\",\"capital ratios\",\"leverage\",\"risk-weighting\"],\"articleSection\":[\"Australia &amp; NZ\",\"Banks &amp; Interest Rates\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/\",\"name\":\"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2013-04-07T05:01:37+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/04\\\/07\\\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. Strategic. Unfiltered. \",\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/thepatientinvestor.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\",\"name\":\"The Patient Investor Pty Ltd\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/thepatientinvestor.com\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/thepatientinvestor.com\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"The Patient Investor Pty Ltd\"},\"image\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/profile.php?id=61572934660810\",\"https:\\\/\\\/www.instagram.com\\\/colin_thepatientinvestor\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\",\"name\":\"ColinTwiggs\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g\",\"caption\":\"ColinTwiggs\"},\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/author\\\/colin58s\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor","og_description":"Jesse Eisinger&#8217;s interview with risk specialist John Breit highlights an issue facing Australian banks. Residential mortgages are allocated a low risk weighting &#8212; 15% to 17% because of historic performance &#8212; compared to 50% for US banks. The big four banks piled into this area because of the perceived low risk, leveraging up to 50 &hellip; Continue reading \"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica\"","og_url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/","og_site_name":"the patient investor","article_publisher":"https:\/\/www.facebook.com\/profile.php?id=61572934660810","article_published_time":"2013-04-07T05:01:37+00:00","author":"ColinTwiggs","twitter_card":"summary_large_image","twitter_misc":{"Written by":"ColinTwiggs","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/#article","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/"},"author":{"name":"ColinTwiggs","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5"},"headline":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica","datePublished":"2013-04-07T05:01:37+00:00","mainEntityOfPage":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/"},"wordCount":199,"commentCount":0,"publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"keywords":["banks","capital ratios","leverage","risk-weighting"],"articleSection":["Australia &amp; NZ","Banks &amp; Interest Rates"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/","url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/","name":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica - the patient investor","isPartOf":{"@id":"https:\/\/thepatientinvestor.com\/#website"},"datePublished":"2013-04-07T05:01:37+00:00","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/07\/lessons-for-australian-banks-why-risk-managers-should-be-spymasters-propublica\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"Lessons for Australian banks: Why Risk Managers Should Be Spymasters | ProPublica"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. Strategic. Unfiltered. ","publisher":{"@id":"https:\/\/thepatientinvestor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/thepatientinvestor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/thepatientinvestor.com\/#organization","name":"The Patient Investor Pty Ltd","url":"https:\/\/thepatientinvestor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/thepatientinvestor.com\/wp-content\/uploads\/2026\/03\/cropped-cropped-patience-bg-1-inverted-400x400-1.png?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"The Patient Investor Pty Ltd"},"image":{"@id":"https:\/\/thepatientinvestor.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/profile.php?id=61572934660810","https:\/\/www.instagram.com\/colin_thepatientinvestor"]},{"@type":"Person","@id":"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5","name":"ColinTwiggs","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/876c4d990bb2af282291d5f3ff81533c6deccc0c607846086647ca3272fac0ca?s=96&d=mm&r=g","caption":"ColinTwiggs"},"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/colin58s\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-1Vw","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":7715,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/05\/06\/are-australian-banks-really-sound\/","url_meta":{"origin":7410,"position":0},"title":"Are Australian banks really sound?","author":"ColinTwiggs","date":"May 6, 2013","format":false,"excerpt":"Business Spectator reports: In a statement APRA chairman John Laker said that, in implementing the Basel III liquidity reforms, the authority's objectives were to improve its ability to assess and monitor ADIs\u2019 liquidity risk and strengthen the resilience of the Australian banking system. \"APRA believes ADIs are well-placed to meet\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5682,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/05\/are-australian-banks-adequately-capitalized\/","url_meta":{"origin":7410,"position":1},"title":"Are Australian banks adequately capitalized?","author":"Colin Twiggs","date":"October 5, 2012","format":false,"excerpt":"Basel III Capital Adequacy Ratios (CAR) will require banks to hold a minimum Total Capital of 8% against risk-weighted assets (RWA), the same as under Basel II, but with additional capital buffers of between 2.5% and 5.0% depending on credit market conditions. With an average ratio of 11.5% (September 2011),\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11405,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/12\/08\/australian-banks-rally-on-murray-report\/","url_meta":{"origin":7410,"position":2},"title":"Australian banks rally on Murray Report","author":"ColinTwiggs","date":"December 8, 2014","format":false,"excerpt":"The ASX 200 Financial sector (ex-REITs) responded well to release of David Murray's report into the financial services industry. As the largest constituent of the ASX 200 index, comprising more than one-third of market capitalization, sector performance is critical in determining future direction of the broader index. Breach of resistance\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"ASX 200 Financial ex Property","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-12-08-xxj.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-12-08-xxj.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-12-08-xxj.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":7464,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/11\/time-to-clean-up-the-banks\/","url_meta":{"origin":7410,"position":3},"title":"Time to clean up the Banks","author":"ColinTwiggs","date":"April 11, 2013","format":false,"excerpt":"Gabriele Steinhauser at WSJ writes: A group of key crisis managers believes cleaning up weak banks is the only way to get Europe's economy to grow again, after superlow interest rates and large-scale liquidity injections from the ECB have failed to produce the desired results. These officials see continued doubts\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12047,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/07\/13\/apra-considers-two-per-cent-capital-adequacy-increase\/","url_meta":{"origin":7410,"position":4},"title":"APRA considers two per cent capital adequacy increase","author":"ColinTwiggs","date":"July 13, 2015","format":false,"excerpt":"by Robin Christie | 14 Jul 2015 The Australian Prudential Regulation Authority (APRA) has stated that the major banks would need to increase their capital adequacy ratios by at least two per cent to meet Financial System Inquiry (FSI) recommendations. APRA has been comparing the capital position of the Australian\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10764,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/08\/28\/banks-hold-more-risk-than-before-gfc-chris-joye\/","url_meta":{"origin":7410,"position":5},"title":"Banks hold more risk than before GFC | Chris Joye","author":"ColinTwiggs","date":"August 28, 2014","format":false,"excerpt":"Chris Joye explains why risk-weighted capital ratios used by Australia's major banks are misleading and why true leverage is more than 20 times tier 1 capital. It was only after 2008 when regulators allowed the majors to slash risk-weightings on home loans from 50 per cent to 15 per cent\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"Tier 1 Capital to Gross Assets","src":"https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.afr.com\/r\/AFR\/Blogs\/christopher_joye\/201408\/Images\/APRA3.png?resize=525%2C300 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=7410"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7410\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=7410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=7410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=7410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}