Market Chatter: Commonwealth Bank of Australia Steps Up Pressure on Regulators Over Macquarie's Capital Advantage

MT Newswires Live
Sep 14

Commonwealth Bank of Australia (ASX:CBA) has stepped up pressure on financial regulators over what it describes as an unfair structural advantage enjoyed by Macquarie (ASX:MQG), according to a Monday report by the Australian Financial Review.

A CBA-commissioned economic analysis from consulting firm Mandala, which was seen by AFR, argues that Macquarie's banking operations report a common equity tier 1 (CET1) capital ratio that understates its true risk exposure, supporting Macquarie's rapid growth in mortgages and deposits, the report added.

An Australian Prudential Regulation Authority (APRA) spokesperson said in a response to an MT Newswires email request for comment that it deprioritized its work on developing a new prudential standard for Level 3 non-operating holding companies, which started in 2022, after the 2023 banking turmoil and now will instead progressively review legacy banking non-operating holding company authorizations to ensure they remain fit for purpose and reflect underlying risks.

CBA declined to comment, while Macquarie did not immediately respond to MT Newswires' email request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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