The Australian Prudential Regulation Authority (APRA) has removed the $500 million capital add-on it imposed on ³Ô¹ÏÍøÕ¾ Australia Bank (NAB) in response to issues identified in the bank’s risk governance self-assessment.
APRA imposed the $500 million capital add-on in July 2019 in response to non-financial risk management and risk culture weaknesses identified in its self-assessment. It was one of 36 of the country’s largest banks, insurers and superannuation trustees that APRA asked to undertake risk governance self-assessments in the aftermath of the .
At the time, APRA indicated the capital add-on would stay in place until NAB had completed its remediation program and closed the gaps identified in its self-assessment.
APRA is now satisfied that NAB has completed its remediation program and adequately addressed the issues raised in its risk governance self-assessment. As a result, APRA has removed the $500m capital add-on effective immediately.
APRA Member Therese McCarthy Hockey said: “³Ô¹ÏÍøÕ¾ Australia Bank is a well-funded and strongly capitalised institution, however it is just as important that the entities we oversee have effective governance and risk management cultures. Where our regulated entities fall short in these areas, APRA won’t hesitate to use its full suite of enforcement power to protect the community from potential harm”.
