Australian banks are understating their capital ratios in comparison to their international peers, a leading credit rating agency says.
"While the banks have estimated internationally comparable regulatory capital ratios, these fail to encompass all the conservative elements, so truly comparable ratios are likely to sit somewhere between the internationally comparable and the domestic regulatory calculations," Fitch said in a report released Friday.
Australia's four major banks have raised more than $20 billion in capital over the past 12 months as part of the local regulator's push to make them among the safest in the world.
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