The Australian Prudential Regulation Authority (APRA) has removed a liquidity add-on imposed on Westpac for breaching APRA’s prudential standards on liquidity, after the bank satisfactorily remediated its liquidity risk management issues.
In 2020, a 10% add-on was applied to the net cash outflow component of Westpac’s Liquidity Coverage Ratio (LCR) calculation, in response to material breaches that demonstrated weaknesses in the bank’s risk management and oversight, risk control framework, and risk culture in its liquidity risk management and reporting.
Meanwhile, Westpac’s capital requirement add-on of $1 billion to reflect the bank’s heightened operational risk profile remains in place.
