APRA team monitors banks as they battle liquidity turmoil
Thu Sep 27 2007
The Australian --- Page: 21 : 27 September 2007 Original article by Geoffrey Newman
LexisNexis Summary
The Australian Prudential Regulation Authority (APRA) has signalled an increased focus on the nation's banking system. A special group of investigators will monitor how the institutions deal with the effects of the US sub-prime mortgage market's deterioration. The banks are facing increased pressure to shore up the liquidity in their loan securitisation programs, and could soon ask APRA for permission to take commercial paper back onto the balance sheet, and therefore raise the short-term capital requirements. While asset-backed securities are slowly regaining support, pricing remains high.
