The Reserve Bank is consulting on a proposal to raise the amount of capital that banks must hold. Insisting that bank shareholders have a meaningful stake in their bank provides a greater incentive to ensure it is well managed. Having shareholders able to absorb a greater share of losses if the company fails also provides stronger protection for depositors,” Deputy Governor and General Manager of Financial Stability Geoff Bascand said today. The Reserve Bank has been reviewing bank capital rules since early 2017. “Bank crises happen more often than many people care to remember, and the economic and social costs of ... (full story)