Commonwealth Bank of Australia (CBA) acknowledges the outcomes of APRA’s review of the progress made against the Prudential Inquiry Remedial Action Plan and its decision in relation to CBA’s operational risk capital as part of the Enforceable Undertaking.
APRA’s validation review found that CBA has made significant progress in implementing the Remedial Action Plan. As a result, the operational risk overlay imposed on CBA is reduced from $1 billion to $500 million with immediate effect. This reduction represents an increase in Common Equity Tier 1 capital of 17 basis points.
Commonwealth Bank Chief Executive Officer Matt Comyn said: “We welcome APRA’s acknowledgment of the progress we have made over the past two years. At the same time, we and APRA recognise there is still a substantial amount of work to do before our Remedial Action Plan is fully implemented and embedded across CBA.
“We remain committed to achieving these outcomes and to ensuring the improvements to strengthen governance, accountability and risk culture frameworks, practices and outcomes are sustained.”
CBA’s Prudential Inquiry progress reports can be accessed on the CBA Newsroom. Our next update will be provided in February 2021.