Macquarie in regulatory talks with APRA
Macquarie Bank has revealed it is currently in discussions with the Australian Prudential Regulation Authority with a view to changing the application of some banking regulations so it can grow its non-banking business.
The bank’s chairman, David Clarke, told the annual general meeting the bank was examining the establishment of a non-operating holding company that would own both banking and non-banking businesses as part of a solution to be negotiated with APRA.
He told the meeting that a significant portion of Macquarie’s business was not strictly banking in nature but that currently commercial banking regulations did not readily accommodate growth in non-banking business.
“Thus, we are currently discussing solutions with APRA,” Clarke said.
“Existing Australian regulations allow corporate groups containing bank and non-banking activities to structure themselves such that, subject to agreement with APRA, non-banking activities are not subject to banking regulations,” he said.
“We are therefore examining the establishment of a non-operating holding company which would own both banking and non-banking businesses.”
AUTHOR
Mike Taylor
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