IMF urges Aus banks on liquidity ratio
Monday 8 August 2011 - by Nicola York
Australia should introduce key liquidity requirements ahead of the Basel III deadline according to the International Monetary Fund.
It also says that concentration in the banking sector has increased following the crisis as the assets of the four largest banks now comprise about 75 per cent of total bank assets.
The IMF says: "The risks outlined above underline the importance of continued rigorous prudential bank supervision by the Australian Prudential Regulation Authority.
"The government should ensure that APRA's capacity keeps pace with emerging risks. We support APRA's plan to undertake more comprehensive stress tests of banks than in 2009/10, including stress tests incorporating a disruption to funding markets."
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