The regulator has forced an extra $250 million capital charge on the bank as the bond trading and workplace culture scandals take a toll on the company.
ANZ Bank has been hit with an extra $250 million capital charge, increasing its balance sheet impost to $750 million, after the prudential regulator identified persistent concerns about its risk management stemming fromThe Australian Prudential Regulation Authority penalty, and stern warning to the ANZ board, come as the bank faces a regulatory probe into alleged market manipulation of the government bond rate while admitting to providing incorrect information to the government’s debt agency.
“While ANZ has launched several investigations into these issues, these issues raise prudential concerns that ANZ has yet to adequately address deficiencies in controls, risk culture, governance and accountability,” he said. “This includes working with APRA on the scope of an independent culture and control review within markets business which has already been initiated and will report to the board.”
Analysts said APRA’s requirement for ANZ to conduct, and respond to, an independent review would put pressure on costs.“The independent review and remediation plan are likely to add to ANZ’s cost growth and require management attention, at a time when ANZ has a full strategic agenda,” said Morgan Stanley analyst Richard Wiles.
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