SYDNEY (Reuters) – Three of Australia’s biggest banks will have to set aside an additional A$500 million ($348 million) each until they have strengthened risk management and reimbursed customers for wrongly charged fees, the prudential regulator said on Thursday.
Westpac Banking Corp , Australia and New Zealand Banking Group Ltd and National Australia Bank Ltd – the country’s second, third and fourth-largest lenders – had been informed in writing of the additional capital requirements, the Australian Prudential Regulation Authority (APRA) said.
Australia - Banks - Improvements - Management - Risks
“Australia’s major banks are well-capitalised and financially sound, but improvements in the management of non-financial risks are needed,” APRA Chair Wayne Byres said in a statement.
“This will require a real focus on the root causes of the issues that have been identified, including complexity, unclear accountabilities, weak incentives and cultures that have been too accepting of long-standing gaps.”
Australia - Lender - Commonwealth - Bank - Australia
Australia’s largest lender, Commonwealth Bank of Australia , was slapped with an additional A$1 billion capital requirement last year after it was accused of thousands of breaches of anti-money laundering protocols.
APRA then asked dozens of other financial services companies to report on their own their risk assessment systems, which it said on Thursday confirmed that “many of the issues” identified...
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