With 21 days to go to the start date of Basel II in Australia, APRA have announced those banks that will be able to use the Advanced methodologies for compliance. They are:
Advanced Everything -

  • ANZ
  • CBA
  • Westpac

Foundation and AMA -

  • Macquarie

AMA only -

  • NAB
  • BankWest

There is a lot of gossip in here. Just as a first cut, I went to the banks’ websites to have a read - at this point only CBA had their media release out. The rest still had their usual “we are wonderful” media releases.

Macquarie going Foundation is interesting. The difference between Foundation and Advanced is really only in the Retail area and, as Mac Bank does not have a huge exposure to retail lending (except through securitisations) this seems a sensible approach.

NAB not getting Advanced credit risk is really a smack in the eye. They have (according to rumour) spent the most on their project of everyone and have failed to do it. For Australia’s biggest bank this is not good. They, and BankWest, can beexpected to catch up soon, though. APRA originally said that no-one would be able to go AMA without an Advanced credit risk approach, o this means they, and the Millionaires’ Factory can be expected to go Advanced credit risk soon.
The notable absence is St. George - who seem to have disappeared off the radar. Anyone with decent gossip on this?

[BTW - if you do leave gossip I maintain I will not hand out contact details or other information unless compelled to do so by a court of law. Keep it factual and there should be no problems.]