From todays announcment
"Heartland's Tier 1 capital ratio is currently approximately 13.2%. If the proposal was to be implemented in its current form, Heartland would be required to lift its Tier 1 capital ratio to 15% over a 5 year transitional period. This equates to an increase in Tier 1 capital of less than 0.4% (or approximately $15m) per year, based on Heartland's current financial position.
Following the recent corporate reorganisation, Heartland's new corporate structure gives it some flexibility to mitigate the impact of any future changes:
o Heartland's Australian reverse mortgage business (with approximately A$640m of assets) is not part of Heartland's banking group. Hence any new capital requirements will not apply directly to those assets.
o Heartland's corporate structure provides for various capital raising options. For example, Heartland Group Holdings Limited could potentially raise debt, and use the proceeds to subscribe for new Tier 1 capital in Heartland Bank Limited. "