01920cas a2200253 a 4500 AALejournalIMF011640 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463932527 1018-5941 BD-DhAAL BD-DhAAL Sheridan, Niamh. Bank Capital Adequacy in Australia / Niamh Sheridan, B. Jang. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper finds that, given Australia's conservative approach in implementing the Basel II framework, Australian banks' headline capital ratios underestimate their capital strengths. Given their high capital quality and the progress in their funding profiles since the global financial crisis, the Australian banks are making good progress toward meeting the Basel III requirements, including the new liquidity standards. Stress tests calibrated on the Irish crisis experience show that the banks could withstand sizable shocks to their exposure to residential mortgages. However, combining residential mortgage shocks with corporate losses expected at the peak of the global financial crisis would put more pressure on Australian banks' capital. Therefore, it would be useful to consider the merits of higher capital requirements for systemically important domestic banks. Mode of access: Internet Jang, B. IMF Working Papers; Working Paper ; No. 2012/025 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/025/001.2012.issue-025-en.xml IMF e-Library