According to an exclusive report by the Australian Financial Review's Jonathan Shapiro and Lucas Baird, the Australian Prudential Regulation Authority (APRA) had repeatedly warned ANZ about deficiencies in its culture and risk management in the lead-up to its recent action against the bank.
Late last month, APRA imposed an additional $250 million risk capital penalty on ANZ due to ongoing concerns about its risk management, bringing the bank's total operational risk capital addon to $750 million. In two letters sent to ANZ executives in 2022 and 2023, APRA lamented a lack of clear progress made on the bank's commitments to improving its culture and risk management practices. "[I]t is not yet apparent what specifically will be delivered, by who, and by when, and with confidence that the solutions will materially uplift the quality and consistency of operational risk practices across ANZ Group," APRA wrote in November 2022.
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion
Sign in and be the first to comment.