Australia’s prudential regulator APRA opened consultation on June 29 proposing
cuts to banks’ credit risk capital settings to free capital and support lending
while keeping the banking system “unquestionably strong”. Key measures: lower
standard risk weights for large domestic public infrastructure loans; reduced
risk weights for certain high‑quality unrated corporate exposures that meet
specified conditions; and adjustments to acquisition, development and
construction (ADC) loan rules to allow more residential development projects to
qualify for the lower 100% risk weight. APRA aims to finalise the package in H2
2026 with implementation from April 1, 2027.
