Debt investors
Macquarie Group has two primary external funding vehicles:
MBL and MGL have separate and distinct funding, capital and liquidity management requirements.
Macquarie Bank Limited (MBL) is an APRA regulated Authorised Deposit Taking Institution (ADI) comprising Australian and international financial services businesses.
MBL provides funding to the Bank Group.
Macquarie Bank Limited (MBL) is an Authorised Deposit taking Institution (ADI) regulated by the Australian Prudential Regulation Authority (APRA). MBL is accredited under the Foundation Internal Ratings Based Approach (FIRB) for credit risk and the Internal Model Approach (IMA) for market risk and interest rate risk in the banking book. These advanced approaches place a higher reliance on a bank’s internal capital measures and therefore require a more sophisticated level of risk management and risk measurement practices. Operational risk is subject to the Standardised Measurement Approach (SMA).
The minimum requirement for the Common Equity Tier 1 (CET1) capital ratio in accordance with Prudential Standard APS 110 Capital Adequacy is 9%. This includes the industry minimum CET1 requirement of 4.5%, capital conservation buffer (CCB) of 3.75% and a countercyclical capital buffer (CCyB)1. The corresponding requirement for Tier 1 capital is 10.5%, inclusive of the CCB and CCyB. In addition, APRA may impose ADI-specific minimum ratios which may be higher than these levels.
Macquarie Bank Group’s capital position is above the regulatory minimum required by APRA.
The Macquarie Bank Group ratios as at 30 September 2024 are:
| Ratio | Harmonised Basel III2 | APRA Basel III |
|---|---|---|
| Macquarie Bank Group CET 1 capital ratio3 | 17.6% | 12.8% |
| Macquarie Bank Group Tier 1 capital ratio | 19.6% | 14.5% |
For more information on APRA's ADI Prudential Framework read the ADI section of the APRA website.
| Ratings agency | Short-term rating | Long-term rating | Latest report |
| Fitch Ratings | F-1 | A+/Stable | Report Ratings upgrade May 2024 |
| Moody’s Rating | P-1 | Aa2/Stable | Report Ratings upgrade June 2023 Criteria upgrade March 2024 |
| Standard & Poor's | A-1 | A+/Stable | Report Ratings upgrade |
Financial statements
MBL is mainly funded by capital, term liabilities and deposits.
The key tools used for accessing wholesale debt funding markets for MBL are outlined in the MBL Debt programs section above, and include information on MBL's wholesale funding programs and program documentation.
MBL also accesses the Australian capital markets through the issuance of negotiable certificates of deposits.
The MBL liquidity policy outlines the liquidity requirements for the Banking Group.
The key requirement of the policy is that MBL is able to meet all of its liquidity obligations on a daily basis and during a period of liquidity stress: a 12 month period of constrained access to funding markets and with only a limited impact on franchise businesses.
For MBL's latest funding profile and more information on MBL's fundng and liquidity requirements, view the latest Management Discussion and Analysis, produced in conjunction with the Macquarie Group result announcement.
MGL is an ASX-listed diversified financial services holding company with its head office in Sydney, Australia. It is regulated by APRA as the Non-Operating Holding Company (NOHC) of a licensed bank.
MGL provides funding predominately to the Non-Bank Group.
As an Australian Prudential Regulation Authority (APRA) authorised and regulated Non-Operating Holding Company, MGL is required to hold adequate regulatory capital to cover the risks for Macquarie, including the Non-Bank Group. MGL and APRA have agreed a capital adequacy framework based on APRA’s capital standards for Authorised Deposit-taking Institutions (ADIs) and Macquarie’s Board-approved Economic Capital Adequacy Model (ECAM).
Macquarie’s capital adequacy framework requires it to maintain minimum regulatory capital requirements calculated as the sum of:
Transactions internal to Macquarie are eliminated.
As at 30 September 2024, Macquarie has $A9.8 billion1,2 in excess of its minimum regulatory capital requirement.
The minimum requirement for the Tier 1 capital ratio in accordance with Prudential Standard APS 110 Capital Adequacy is 10.5%. This includes the industry minimum Tier 1 requirement of 6%, capital conservation buffer (CCB) of 3.75% and a countercyclical capital buffer (CCyB)2. In addition, APRA may impose ADI-specific minimum ratios which may be higher than these levels.
Macquarie Bank Group’s capital position is above the regulatory minimum required by APRA.
| Ratings agency | Short-term rating | Long-term rating | Latest report |
| Fitch Ratings | F-1 | A/Stable | Report Ratings upgrade |
| Moody’s Rating | P-1 | A1/Stable | Report Ratings upgrade June 2023 Criteria upgrade March 2024 |
| Standard & Poor's | A-2 | BBB+/Stable | Report Ratings upgrade |
Financial Statements
Reflecting the longer-term nature of the Non-Banking Group asset profile, MGL is funded predominantly with a mixture of capital and long term wholesale funding.
For more information on MGL's wholesale funding programs and program documentation, view MGL Debt programs above.
The MGL liquidity policy outlines the liquidity requirements for the Non-Banking Group.
The key requirement of the policy is that MGL is able to meet all of its liquidity obligations on a daily basis and during a period of liquidity stress - defined as a 12 month period with no access to funding markets - and with only a limited impact on franchise businesses.
For MGL's latest funding profile and more information on MGL's funding and liquidity requirements view the latest Management Discussion and Analysis, produced in conjunction with the Macquarie Group result announcement.
