By aaditya govindrao
(Reuters)-The bank's organizer in Australia increased again, the ANZ Monetary Group must keep it in the reserve, as it criticized on Thursday what he said was the lender's failure to address extensive problems with non-financial risk management.
The Australian Wisdom Organization (APRA) has increased the amount of backup money that the fourth largest bank in Australia must continue at hand to one billion dollars (628.50 million dollars) from 750 million dollars. This was followed by a similar increase of $ 250 million imposed by the organizer in August.
The Supervisory Authority also accepted a viable court pledge from the lender to address non -financial risk management practices and risk culture.
Anz shares decreased to 3.6 % by 0016 GMT, while the broader standard decreased by 1.8 %.
In August, the organizer asked an Iz independent review to determine the root cause of its problems, in response to the widespread bad behavior of the bond trading unit.
Exaggerating the value of government bonds that have been traded by more than $ 50 billion over one year, according to local media reports. Anz did not confirm this number, and the corporate organizer is achieved in the alleged misconduct.
APRA said that the review found that the shortcomings of the bond trading unit may be present in other parts of the bank, adding that the Anz treatment program to implement the non -financial risk management framework at the group level was not enough to solve its problems.
The control agency said: “Aprra has valued that the completion of this program alone will not address effectively and sustainable the broader weaknesses of the risks across Anz.”
ANZ said in a separate statement that before all the review recommendations, he was taking immediate measures in response to the review and undertaking with APRA.
Among these procedures is the establishment of the position of the group's president, the delivery of the non -financial risk program. Mark Evans, President of Singapore, Southeast Asia, India and the Middle East, will play the new role.
“While the bank remains in a strong financial position with strong capital levels and liquidity, we know that we have more work that must be done during the next two or three years to enhance the decline in non -financial risk practices,” said China Elliot, CEO of AZ.
Some analysts said the changes would increase cost pressure for the bank.
“We have seen that the executive pledge requires more investment in risk and compliance systems over a multi -year period, a symbol of higher growth growth and is not fully placed in unanimity estimates,” Sandstone Insights analysts said in a note.
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