The Australian Prudential Regulation Authority is working with the mutual sector to look at how mutuals can achieve capital growth in a slow growth environment.
APRA chairman John Laker said the industry needed to "apply some thought" to how mutuals could raise capital other than through retained earnings.
Speaking at Finsia's Financial Services Conference in Sydney yesterday, Laker said: "We like institutions to be able to raise capital as and when they need it.
"We are talking to them [mutuals] about forms of capital for loss absorbency.
"Life in a slow...
You have to be logged in to read this article. Sign in below, or subscribe now for free no obligation trial.