The ASX, the Administrator of BBSW, has been working closely with market participants and the regulators on finalising the details of the new methodology. This will involve calculating BBSW as the volume weighted average price (VWAP) of bank bill transactions. It will cover a wider range of institutions during a longer trading window.
Under today's relatively stable minimum regulatory capital requirements, banks hold excess capital to be able to respond to potential business expansion opportunities and to manage through market and  BIS Review 18/2007  5  credit risk cycles.