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BRIEF-APRA Takes Action Against Bendigo And Adelaide For Breaching Standard On Liquidity

Published 21/10/2020, 09:49 pm
© Reuters.

Oct 21 (Reuters) - APRA:

* APRA TAKES ACTION AGAINST BENDIGO AND ADELAIDE BANK FOR BREACHING PRUDENTIAL STANDARD ON LIQUIDITY

* APRA - INCREASED BENDIGO AND ADELAIDE BANK'S MINIMUM LIQUIDITY REQUIREMENT FOR FAILING TO COMPLY WITH APRA'S ADI PRUDENTIAL STANDARD ON LIQUIDITY

* APRA SAYS BENDIGO AND ADELAIDE BANK INFORMED APRA IN SEPTEMBER OF MULTIPLE BREACHES OF APS 210 STEMMING FROM IT CODING

* APRA - WILL REQUIRE REVIEW BY INDEPENDENT THIRD PARTY INTO BENDIGO AND ADELAIDE BANK'S ADHERENCE WITH APRA'S LIQUIDITY REQUIREMENTS

* APRA - BENDIGO AND ADELAIDE BANK'S BREACHES, WHILE MATERIAL, DO NOT IMPACT OVERALL SOUNDNESS OF BANK'S CURRENT LIQUIDITY POSITION

* APRA SAYS WILL ALSO REQUIRE BEN TO APPLY A 10 PER CENT ADD-ON TO THE NET CASH OUTFLOW COMPONENT OF ITS LCR CALCULATION,

* APRA-ADD ON TO NET CASHFLOW COMPONENT WILL REMAIN IN PLACE UNTIL INDEPENDENT REVIEW IS FINALISED & SHORT-COMINGS HAVE BEEN RECTIFIED

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