Money: APRA forces NAB, Westpac, ANZ to hold extra $500m each in capital due to culture, governance concerns - PressFrom - Australia
  •   
  •   

MoneyAPRA forces NAB, Westpac, ANZ to hold extra $500m each in capital due to culture, governance concerns

03:50  12 july  2019
03:50  12 july  2019 Source:   smh.com.au

Time for Australia to give itself some governance aid

Time for Australia to give itself some governance aid Australia spends a lot of money teaching less developed countries about the importance of governance and transparency, but we look a lot like a banana republic when it comes to integrity.

The financial regulator will force National Australia Bank , Westpac and ANZ Bank to each hold an extra $ 500 million in capital due to problems with their governance and culture . The Australian Prudential Regulation Authority ( APRA ) on Thursday said it was slapping on the extra capital

Three big banks face another drag on profits, after the regulator ordered NAB , Westpac and ANZ Bank to each hold an extra $ 500 million in capital . The Australian Prudential Regulation Authority ( APRA ) on Thursday said it was slapping on the extra capital requirement in response to the banks '

APRA forces NAB, Westpac, ANZ to hold extra $500m each in capital due to culture, governance concerns© Louis Douvis APRA chairman Wayne Byres says more improvement is needed NAB, ANZ and Westpac. The financial regulator will force National Australia Bank, Westpac and ANZ Bank to each hold an extra $500 million in capital due to problems with their governance and culture.

The Australian Prudential Regulation Authority (APRA) on Thursday said it was slapping on the extra capital requirement in response to the bank's "self-assessments" of how they managed "non-financial risks."

The banks were ordered to carry out the assessments after a similar exercise at scandal-plagued  Commonwealth Bank saw it get hit with a $1 billion capital charge last year.

Home loan borrowing capacity to be boosted as APRA scraps rule

Home loan borrowing capacity to be boosted as APRA scraps rule The change could see new mortgage customers' borrowing capacity increase by about 10 per cent or more, analysts have estimated. © Peter Rae The change is set to boost the already-stabilising Sydney and Melbourne property markets. The change, which has strong support from banks, is seen by experts as one reason behind the recent signs of stabilisation in Sydney and Melbourne's property markets, alongside the election result and the back-to-back interest rate cuts.

The financial regulator will force NAB , Westpac and ANZ Bank to each hold an extra $ 500 million in capital due to problems with their governance and culture . The Australian Prudential Regulation Authority ( APRA ) on Thursday said it was slapping on the extra capital requirement in response to

The Australian Prudential Regulation Authority ( APRA ) is forcing three of the big Aussie banks to hold more capital APRA said on Thursday that it has written to ANZ , National Australia Bank ( NAB ) and Westpac advising of an increase in their minimum capital requirements of A$ 500 million each .

The additional charge for "operational risk," which will likely weigh on returns, will be kept in place until the banks complete their plans to strengthen their management of "non-financial risks" and close gaps identified in the self-assessments. APRA is not releasing the self-assessments, though NAB has made its public.

By late morning, ANZ shares were down 0.6 per cent, Westpac shares had slipped 0.2 per cent, and NAB shares were up 0.2 per cent. CBA shares were 4c or 0.05 per cent higher at $81.29.

APRA said the self-assessments, which 36 of the country's biggest banks, insurers and superannuation funds were required to conduct, did not raise any concerns about these institutions' financial soundness.

But the regulator did find that many of the problems at CBA - which was found to be too insular, among other harsh criticisms - were not unique to it.

Bank loan glitch leaves Westpac customers out of pocket

Bank loan glitch leaves Westpac customers out of pocket At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer than expected. Customers had signed up for home loans which allowed them to pay just the interest for a number of years. But a glitch meant the interest-only period did not expire as scheduled, meaning Westpac, St George, Bank of Melbourne and Bank SA customers were not paying down the principal as planned. require(["inlineoutstreamAd", "c.

APRA forces NAB , Westpac , ANZ to hold extra $ 500 m each in capital due to culture , governance concerns . The Australian Prudential Regulation Authority ( APRA ) on Thursday said it was slapping on the extra capital requirement in response to the bank 's "self-assessments" of how they managed

APRA forces NAB , Westpac , ANZ to hold extra $ 500 m each in capital due to culture , governance concerns – The SMH. Deeming rates explained: What they are, how they cut pensions and why we have them – ABC. NAB warns tax cuts won’t deliver much economic boost – ABC.

“Australia’s major banks are well-capitalised and financially sound, but improvements in the management of non-financial risks are needed. 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," APRA chairman Wayne Byres said.

“The major banks play a vital role in the stability of the entire financial system, and APRA expects them to hold themselves to the highest standards of risk governance. Their self-assessments reveal that they have fallen short in a number of areas, and APRA is therefore raising their regulatory capital requirements until weaknesses have been fully remediated,” Mr Byres said.

ANZ Bank told investors that the lift in its capital requirement would lower its tier 1 capital ratio, a key gauge of strength, by 18 basis points.

Search for mum, baby who left Syd hospital

Search for mum, baby who left Syd hospital NSW Police hold serious concerns for the welfare of a mum after she left a Sydney hospital against medical advice with her newborn baby. There are serious concerns for a mum who left a hospital in northwest Sydney with her newborn baby girl against medical advice. Te-Aroha Hape, 32, left Hornsby Hospital with her three-day-old daughter without medical clearance on July 6, NSW Police said in a statement on Friday. Police hold serious concerns for their welfare as both may require medical assistance.

APRA forces NAB , Westpac , ANZ to hold extra $ 500 m each in capital due to culture , governance concerns . The Australian Prudential Regulation Authority ( APRA ) on Thursday said it was slapping on the extra capital requirement in response to the bank 's "self-assessments" of how they managed

Banks insist new code has 'real teeth'. Australian banks will be held to a higher standard as a fresh code of practice for their industry kicks in on Monday. APRA forces NAB , Westpac , ANZ to hold extra $ 500 m each in capital due to culture , governance concerns .

Westpac said the change would reduce its tier 1 capital ratio, which was most recently 10.64 per cent  of risk-weighted assets, by 16 basis points.

Chief executive Brian Hartzer said: "We acknowledge the need to improve non-financial risk management andoversight and we are working to resolve the issues raised. Our Board and senior executives are committed to addressing the shortfalls identified in the report and will continue to provide regular updates on our progress.”

NAB said the capital charge would lower its common equity tier 1 capital ratio by 16 basis points. Acting chief executive  Phil Chronican said the bank, which released its self-assessment last year, was working on implementing the report's recommendations in order to "accelerate and drive far-reaching change."

For example, he said the bank had improved how it compensated customers, paying out $170 million in the year to June, and it had reduced aged small business complaints by 50 per cent since last October.

“The board and executive leadership team take the findings seriously and we are moving forward with rigour and discipline to change the way we operate," Mr Chronican.

Read more

'Serious concerns' for missing mother, three children north of Brisbane.
Carly Robson disappeared from Narangba with her three children - a one-year-old boy and two girls aged four and nine. © Queensland Police Service Carly Robson's three children. They have not been heard from since their disappearance. It was believed they may be travelling in the Brisbane area. Ms Robson has been described as Caucasian, 168 centimetres tall with a slim build and blonde hair. Anyone with information should contact their local police station or call Policelink on 13 14 44.

—   Share news in the SOC. Networks
usr: 4
This is interesting!