D-SIB standard to be made clear
The Australian Prudential Regulation Authority said it would publish "the key elements of its methodology" for assessing domestic systemically important banks, or D-SIBs, by the end of the year.In its 2013 annual report, APRA said this methodology "will assess the degree to which banks are systemically important in Australia… and ensure a D-SIB has higher loss absorbency."D-SIBS, which seem likely to include all four major banks, and perhaps also Macquarie, will be the latest layer of extra capital imposed on the industry as the regulatory reform agenda instituted after the GFC cranks up.The banking regulator has advised the big banks to limit their dividend payouts, according to a report in the Australian Financial Review. The AFR reported yesterday that banks expect the levy to be in the order of one to 1.5 percentage points higher than many had previously anticipated.The AFR also reported that last week APRA reminded banks to maintain adequate capital buffers and cautioned them on paying high dividends.