A report of an imminent stress test for Australian banks is not correct, the ANZ said. Illustration: Karl Hilzinger
ANZ has rejected reports that regulator Australian Prudential Regulation Authority has ordered the banking sector to stress test their portfolio for an economic shock within the next week, describing the claim as not correct.
According to an unsourced report in today’s Australian Financial Review, the bank regulator had given the banks one week to model the impact of a worst-case scenario.
The AFR claimed this test included modelling of a contraction in gross domestic product, unemployment rate climbing to 12 per cent, as well as a 30 per cent decline in house prices and a 40 per cent drop in commercial property values.
We’re not aware of any requests from APRA to complete a review on that basis within a week, ANZ chairman John Morschel told shareholders at the bank’s annual meeting.
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