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APRA Reduces Westpac Capital Add-On by $500M

APRA Reduces Westpac Capital Add-On by $500M

by Starling Insights

Starling Insights Editorial Board

Jul 24, 2024

Observations

The Australian Prudential Regulation Authority (APRA) announced last week that it would reduce the $1 billion operational risk capital add-on it had applied to Westpac by $500 million. APRA said the reduction was due to the bank's progress in improving its governance, culture, and risk management.

APRA imposed a $500 million add-on in July 2019 after Westpac's Risk Governance Self-Assessment uncovered serious shortcomings. The regulator added an additional $500 million later in 2019 amid further risk governance concerns.

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