The country is an outlier internationally, with a large proportion of AT1s held by domestic retail investors. Regulator Apra believes this would make it particularly challenging to use AT1s during the recapitalisation of a bank in resolution.
Australia’s Royal Commission has brought out into the open a decade’s worth of misconduct in the country’s banking sector. As the industry faces geopolitical pressures and the emergence of challenger banks, Australian banking is set for an overhaul. Kimberley Long reports.