On 3 September 2026, the Australian Prudential Regulation Authority (APRA) imposed licence conditions on ING Bank Australia Limited (ING Australia), raised the bank’s minimum liquidity requirement and applied a $50 million operational risk capital add-on. The trigger was a multi-year overstatement of the bank’s Liquidity Coverage Ratio (LCR). ING Australia had been reporting an LCR…
On 25 August 2026, the Reserve Bank of Australia set out how far along it is on what it calls the road to ample. In a Sydney speech, the RBA’s Head of Domestic Markets, David Jacobs, described the central bank’s transition to an RBA ample reserves framework, a demand-driven regime for supplying the Exchange Settlement…
On 18 August 2026, APRA imposed licence conditions on Bendigo and Adelaide Bank Limited over what it described as longstanding and pervasive weaknesses in the bank’s non-financial risk management framework. The action is worth reading closely by every Australian authorised deposit-taking institution, because APRA reached for a power that sits underneath the banking authority itself…
Bendigo and Adelaide Bank has admitted it breached its accountability obligations under the Banking Executive Accountability Regime (BEAR), and on 10 August 2026 the Australian Prudential Regulation Authority (APRA) filed civil penalty proceedings against it in the Federal Court. The parties have jointly proposed that the bank pay an $8 million pecuniary penalty, subject to…
APRA ECAI recognition matters where APS 112 uses an external rating to determine a credit rating grade and risk weight. Many other standardised-approach exposures are risk-weighted under prescribed exposure-class, loan-to-value, default-status or other rules that do not depend on an ECAI rating. On 9 July 2026, APRA republished the guidelines that govern that recognition, after…
Final settlement of many Australian dollar interbank obligations occurs across Exchange Settlement Accounts at the Reserve Bank, accessed through RITS. When RITS-related services are disrupted, some file-based payments and property settlements can miss normal processing windows. On 27 January 2026 that is roughly what happened, and the Reserve Bank’s 2026 RITS assessment, released on 19…
If your board secretariat still lodges a fit and proper form every time a director or senior executive joins, the APRA governance reform now in consultation changes the calculus. On 16 June 2026 APRA opened consultation on a redrafted Prudential Standard CPS 510 Governance that pulls five existing standards into one, sets a 12-year tenure…
Treat IRB accreditation as a capital-saving shortcut and the project tends to stall about eighteen months in, when the model validators ask for three years of clean default data the bank never kept. The internal ratings-based approach lets a bank use its own estimates of borrower risk to set credit risk-weighted assets, instead of the…
The way an Australian ADI books its APRA settlement service provider deposits can swing its minimum liquidity holdings ratio. Count a deposit as a liquid asset when it is actually pledged to a settlement provider and the ratio overstates real liquidity. Strip out one that genuinely sits at call and it understates it. Either error…