Australian Prudential Regulation Authority objects to Customer Owned Banking Association’s claims of ‘same’ regulation

The Prudential Regulation Authority says small banks will not be forced to meet the same liquidity and capital standards as their larger rivals, despite claims by the Customer Property Banking Association that the proposed changes will “destroy significant competition”.

The Australian Prudential Regulation Authority said in November it would launch a consultation on tighter liquidity rules for smaller banks because it is concerned about avoiding a Silicon Valley-style collapse that could have a knock-on effect on the financial system.