ANZ says NZ unit to be hit new rules limiting its exposure to units

Credit: REUTERS/EDGAR SU

Australia and New Zealand Banking Group said on Tuesday that its New Zealand unit will be most affected by a move by Australia's financial watchdog to limit exposure of a parent lender to its units.

Aug 20 (Reuters) - Australia and New Zealand Banking Group ANZ.AX said on Tuesday that its New Zealand unit will be most affected by a move by Australia's financial watchdog to limit exposure of a parent lender to its units.

The country's fourth-largest lender by market value said the Australian Prudential Regulation Authority's announcement may limit its ability to inject capital into ANZ Bank New Zealand, and that the unit will have to hold a larger portion of its earnings to meet capital requirements locally.

(Reporting by Nikhil Kurian Nainan in Bengaluru)

((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN; +91 806 749 1637;))

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