Debt investors
Macquarie Group has two primary external funding vehicles:
MBL and MGL have separate and distinct funding, capital and liquidity management requirements.
1. The Bank Group comprises BFS, CGM (excluding certain assets of the Credit Markets business, certain activities of the Commodity Markets and Finance business and some other less financially significant activities), and certain activities of the Equities business in Macquarie Capital. The Non-Bank Group comprises Macquarie Capital (excluding certain activities of the Equities business), MAM and certain assets of the Credit Markets business, certain activities of the Commodity Markets and Finance business and some other less financially significant activities of CGM.
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 has the following accreditations for calculating Capital Adequacy:
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.
The Macquarie Bank Group ratios as at 30 September 2022 on a Harmonised Basel III basis1 are:
| Ratio | As at 30 September 2022 |
|---|---|
| Macquarie Bank Group Common Equity Tier 1 capital ratio2 | 15.9% |
| Macquarie Bank Group Tier 1 capital ratio | 17.9% |
APRA is requiring Australian banks to follow an accelerated Basel III implementation compared to the Basel Committee’s gradual phase-in of Basel III, with a minimum Common Equity Tier 1 (CET1) ratio of 4.5% required from January 2013 and immediate phase in of additional CET1 deductions. In addition, APRA has added conservative overlays (‘super equivalence’) to the Basel Committee’s Basel III capital requirements.
Macquarie Bank Group position at 30 September 2022 meets the APRA latest Basel III requirements, i.e. minimum ratios plus capital conservation buffer.
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 |
| Moody's Investors Service | P-1 | A2/Positive | Report Outlook upgrade |
| Standard & Poor's | A-1 | A+/Stable | Report Ratings upgrade |
MBL has four debt programs:
Securities that may be issued under the DIP include:
Download documents for most recent DIP offering.
Documents Incorporated by Reference
Financial Statements
MBL DIP previous terms and conditions set out on:
MBL Constitution
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 NonOperating 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 for Macquarie, based on APRA’s capital standards for Authorised Deposit-taking Institution (ADI) 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:
As at 30 September 2022, Macquarie had regulatory capital of $A37.2 billion, $A15.7 billion1,2 in excess of minimum regulatory capital requirement on a Harmonised Basel III basis3 .
APRA is requiring Australian banks to follow an accelerated Basel III implementation compared to the Basel Committee’s gradual phase-in of Basel III, with a minimum Common Equity Tier 1 (CET1) ratio of 4.5% required from January 2013 and immediate phase in of additional CET1 deductions. In addition, APRA has added conservative overlays (‘super equivalence’) to the Basel Committee’s Basel III capital requirements.
Macquarie Bank Group’s position at 30 September 2022 meets the APRA’s Basel III requirements, i.e. minimum ratios plus capital conservation buffer.
| Ratings agency | Short-term rating | Long-term rating | Latest report |
| Fitch Ratings | F-1 | A/Stable | Report Ratings upgrade |
| Moody's Investors Service | P-2 | A3/Positive | MGL Report MFHPL Report Outlook upgrade |
| Standard & Poor's | A-2 | BBB+/Stable | Report Ratings upgrade |
MGL has two debt programs:
Securities that may be issued under the DIP include:
Download documents for most recent DIP offering.
Documents Incorporated by Reference
Financial Statements
MGL DIP previous terms and conditions set out on:
MGL Constitution
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.
