APRA in Australia has begun consultations on adjusting bank risk weights.

The Australian Prudential Regulation Authority has begun public consultation on proposed adjustments to bank credit risk capital settings. The proposed changes include: - Allowing lower risk weights for exposures to large domestic public infrastructure; - Allowing lower risk weights for exposures to high-quality unrated corporates under specific conditions; - Adjusting criteria to qualify more residential property development projects for a 100% lower risk weight; - Finalizing the credit risk capital adjustments by the second half of 2026, with the changes set to take effect on April 1, 2027; - Consultation on proposals related to liquidity risk and market risk will be conducted within the next 12 months.