November 23, 2012 / 3:11 AM / 5 years ago

Australian banks need small capital increase for Basel III - ANZ CEO

MELBOURNE, Nov 23 (Reuters) - Australian banks will need a small capital increase to meet Basel III global banking regulations but should easily be able to meet the requirments, the chief executive of Australia and New Zealand Banking Group Ltd said on Friday.

The International Monetary Fund this week said the country’s “Big Four” banks - ANZ, National Australia Bank, Commonwealth Bank of Australia and Westpac -- should be required to raise more reserves because the industry is dominated by just a few companies.

“I don’t think it will be a dramatic increase in the capital charge, it will be half a percent or something like that,” ANZ CEO Mike Smith told a business audience. “It will be quite easy to generate that.”

The full Basel III rules are due to come into force in 2016.

Reporting by Victoria Thieberger; Writing by Lincoln Feast; Editing by Kim Coghill

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