realestatebusiness logo
Subscribe to our newsletter SIGN UP

New liquidity rules could cost borrowers

06 November 2009 Reporter

The Australian Prudential and Regulation Authority’s (APRA) new liquidity rules could add 0.05 of a percentage point to borrowing rates.

According to a report in The Australian Financial Review, the proposed rules have been modelled off a similar British reform, which caused the small cost to be imposed on UK banks.

APRA has said it wants to avoid a repeat of the liquidity crisis that occurred in late 2008 when banks could not fund their balance sheet commitments.

Under the new rules, banks would be forced to hold larger quantities of liquid assets and a higher quality of liquid assets.

“The world needs strict and precise timetables for imposing tougher regulations because the forces of amnesia and resistance to change that will inevitably accompany the return to calmer global conditions may soon begin to chip away at fundamental reforms,” APRA chairman John Laker said in a speech last week.

New liquidity rules could cost borrowers
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Where is the biggest threat to agents in 2019?

3rd party lead generation companies
DIY models discounting sales commission
Prop-tech firms cutting out the agent value proposition
A yet unidentified proper disruptor – like Uber or Airbnb
None of the above. There is no threat.
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.