Australian banks' capital protection reaches post-GFC high, FC Capital says

• Australian banks remain resilient despite falling house prices, supported by stronger capital buffers, according to an October 2026 banking-sector analysis.
• The average common equity tier 1 ratio reached 12.4% in June 2026; a separate 4.5% loss-absorbing capital requirement took effect in 2026.
• House prices fell 20% year over year in October, but fewer than 1% of home loans had negative equity.
• Nonperforming loans remained low by global standards, supported by economic growth and low unemployment.
• Reduced reliance on overseas wholesale funding strengthened banks' resilience to international shocks.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Fc Capital Holdings Pty Ltd published the original content used to generate this news brief on October 26, 2026, and is solely responsible for the information contained therein.