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Home» About Macquarie Group» Investor Relations» Debt investors» Unsecured Funding» MBL and the Banking Group» MBL capital and regulation

Investor Relations

MBL capital and regulation

Macquarie Bank Limited (MBL) is an Authorised Deposit-taking Institution (ADI) regulated by the Australian Prudential Regulation Authority (APRA).

MBL is accredited under the Basel II:

Foundation Internal Ratings Based Approach (FIRB) for credit risk
Advanced Measurement Approach (AMA) for operational risk
Internal model approach for market risk
Internal model approach for interest rate risk in the banking book.

These advanced approaches place a higher reliance on a bank’s internal capital measures and require a more sophisticated level of risk management and risk measurement practices.

APRA requires ADIs to have a minimum ratio of capital to risk weighted assets of 8 per cent at both Level 1 (ELE Group) and Level 2 (Consolidated Banking Group), with at least half of this capital in the form of Tier 1 capital. In addition, APRA imposes ADI specific minimum capital ratios that may be higher than these levels. The MBL Group internal capital policy set by the Board requires capital floors above the minimum regulatory required levels.

The Macquarie Banking Group ratios as at 31 March 2012 are:

Ratio	As at 31 March 2012
Macquarie Banking Group Tier 1 Capital ratio	13.8%
Macquarie Banking Group Core Tier 1 Capital ratio¹	12.5%
Macquarie Banking Group Total Capital ratio	16.6%
1. Core Tier 1 represents Tier 1 excluding hybrid Tier 1 instruments

Further information

For more information on MBL's capital base read the latest Management Discussion and Analysis.

For more information on APRA's ADI Prudential Framework read the ADI section of the APRA website.

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All securities and financial product or instrument transactions involve risks. Past performance of any product described on this site is not a reliable indication of future performance.

Macquarie only carries on banking activities in those countries it is authorised to do so. Macquarie Bank Limited (MBL) is authorised by the Australian Prudential Regulation Authority (APRA) in Australia to carry out banking business in Australia. Each of MBL, acting through its London branch, and Macquarie Bank International Limited, is authorised and regulated by the UK Financial Services Authority to carry on banking business in the United Kingdom. MBL, acting through its Seoul Branch, is authorised and regulated by the Financial Services Commission in Korea to carry out banking business in Korea. MBL, acting through its Singapore Branch, is authorised and regulated by the Monetary Authority of Singapore to carry out banking business in Singapore.

Other than MBL, any Macquarie Group entity noted on this page is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). That entity's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Macquarie Bank Limited maintains Representative Offices in the states of Illinois, New York and Texas, but is not authorised to conduct banking business in the US.