The Australian Prudential Regulation Authority has approved the ANZ Group's new model for Australian residential mortgages, to be adopted from June 2017. This follows a review, first announced by ANZ in August last year. In a release yesterday, ANZ said adoption of the new model is expected to decrease its Level 2 Common Equity Tier1 ratio by 26 basis points, based on its balance sheet at 31 March 2017. This would equate to an average risk weight applied to ANZ's Australian mortgage portfolio of "a little over" 28.5 per cent. Further changes to the bank sector's capital requirements are expected after APRA's clarification of the "unquestionably strong" capital framework. Around two thirds of Australia's financial services employers will allow their staff a pay rise of up to three per cent in their next review, but eight per cent will not increase salaries at all, recruiting firm Hays Banking said in their annual Hays Salary Guide, released yesterday. Hays found that a fifth of financial services employers intend to award a salary increase of between three and six per cent. Hays said just three per cent will increase salaries by more than six per cent.