The Australian Prudential Regulation Authority (APRA) says that it is seeing requests to make "uneconomic calls", with global credit spreads widening significantly over the past 12 months.
New APRA chair John Lonsdale wrote to banks and general and life insurers to remind them of the prudential requirements for additional Tier 1 and Tier 2 capital instruments.
This article charts the recent developments in this area including the Basel Committee on Banking Supervision’s draft principles on the effective management & supervision of climate-related financial risks.