❓ Hon Ken Travers questions the Minister for Housing regarding Keystart's capital adequacy ratio, cash reserves, and the impact of the loan guarantee fee on its policy. The Minister provides figures on retained earnings and clarifies the policy remains unchanged, based on APRA guidelines and KPMG reviews.
AnsweredQoN 42Legislative Council
QuestionView source ↗
KEYSTART —
CAPITAL ADEQUACY RATIO
42. Hon KEN TRAVERS to the
Minister for Housing:
(1) How much cash and retained earnings are currently held by
Keystart?
(2) How much of this is held to
ensure that Keystart meets its required capital adequacy ratio?
(3) Prior to the
implementation on Keystart of the loan guarantee fee, what was Keystart's
policy on its required capital adequacy ratio?
(4) Was this based on actuarial
advice?
(5) Has, or will,
this policy be changed due to the implementation of the loan guarantee fee;
and, if yes, what will be the new policy?
CAPITAL ADEQUACY RATIO
42. Hon KEN TRAVERS to the
Minister for Housing:
(1) How much cash and retained earnings are currently held by
Keystart?
(2) How much of this is held to
ensure that Keystart meets its required capital adequacy ratio?
(3) Prior to the
implementation on Keystart of the loan guarantee fee, what was Keystart's
policy on its required capital adequacy ratio?
(4) Was this based on actuarial
advice?
(5) Has, or will,
this policy be changed due to the implementation of the loan guarantee fee;
and, if yes, what will be the new policy?
AnswerView source ↗
I thank the member for some notice
of this question.
(1) There is
$268.4 million in retained earnings, which includes $209.4 million of cash and
short-term investments.
(2) The amount held is $268.4 million.
(3) The loan guarantee fee has not
changed Keystart's capital adequacy policy.
(4) The capital
framework is based upon Australian Prudential Regulation Authority guidelines
and is regularly reviewed by KPMG.
(5) The loan
guarantee fee will phase in over time with new borrowings. The capital adequacy
policy will be maintained, and accordingly the prudential requirements of
Keystart will be monitored over coming budgets.
of this question.
(1) There is
$268.4 million in retained earnings, which includes $209.4 million of cash and
short-term investments.
(2) The amount held is $268.4 million.
(3) The loan guarantee fee has not
changed Keystart's capital adequacy policy.
(4) The capital
framework is based upon Australian Prudential Regulation Authority guidelines
and is regularly reviewed by KPMG.
(5) The loan
guarantee fee will phase in over time with new borrowings. The capital adequacy
policy will be maintained, and accordingly the prudential requirements of
Keystart will be monitored over coming budgets.
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