CBA, NAB & ANZ share prices: RBNZ capital decision in focus
Specifically, the RBNZ has today released its final decision relating to updated capital requirements for large and small New Zealand banks/ banks with New Zealand operations. As was mostly expected by analysts prior to today’s media release: the RBNZ’s capital requirements have come in significantly stricter than ARRA’s own ‘unquestionably strong’ CET1 ratio requirement of 10.5%, for Australian banks. ‘More flexibility […] on the use of specific capital instruments’, ‘a more cost-effective mix of funding options’, ‘a lesser increase in capital for the smaller banks’, ‘a more level capital regime for all banks’, and ‘more transparency in capital reporting.’. On this front, the Commonwealth Bank of Australia (ASX: CBA) saw its share price jump 1.04%, the Australia and New Zealand Banking Group (ASX: ANZ) share price rose around 2.32% and the National Bank of Australia gained 2.01%. Even Westpac, for all its recent issues, saw its share price rise, gaining 1.27% during today’s session. Alleviating potential concerns that ANZ would be required to raise more capital, the bank’s Chief Executive Officer, Shayne Elliott commented that 'today's [RBNZ] announcement provides the certainty required to prepare our business for the future.'.