The uneven treatment by the Australian Prudential Regulation Authority of the approach to capital management by St George bank and ANZ has the latter toey with APRA over the regulator's favour to the former, the
Herald Sun reported.
St George Bank last week announced a capital management program that includes plans for an underwritten divided reinvestment plan that is expected to raise $458 million as well as a non-innovative tier one issue expected to raise $400 million.
ANZ a week earlier said it would underwrite its dividend reinvestment program and thus to raise around $1 billion in fresh capital.
APRA recognised the DRP component of St George's forthcoming capital raising as for the purpose of working out capital ratios, but ignored this in working out ANZ's ratios. APRA also granted St George a slight reduction in core capital ratios, to 6.5 per cent from 6.7 per cent.