The Australian Prudential Regulation Authority has imposed licence conditions on Bendigo and Adelaide Bank after an independent root cause analysis found longstanding and pervasive weaknesses in its non-financial risk management framework. The bank must undertake a comprehensive rectification program, appoint an independent assurer and provide board attestation that the required remediation has been completed sustainably. The analysis found that Bendigo Bank lacked a clear, complete and reliable view of its regulatory obligations, material risks and key controls, with material deficiencies in governance, accountability, compliance management, risk oversight and risk capability. APRA concluded that weaknesses had persisted despite several years of remediation under the bank’s enterprise-wide risk transformation program. The regulator will retain the existing AUD 50 million operational risk capital add-on until the underlying prudential concerns have been addressed to its satisfaction, as part of a response coordinated with the Australian Securities and Investments Commission and the Australian Transaction Reports and Analysis Centre.
2026-08-18Australian Prudential Regulation Authority
Australian Prudential Regulation Authority imposes licence conditions on Bendigo Bank and retains AUD 50 million operational risk capital add-on
The Australian Prudential Regulation Authority has imposed licence conditions on Bendigo Bank after an independent analysis identified pervasive and longstanding non-financial risk management weaknesses. The bank must complete a comprehensive rectification program subject to independent assurance and board attestation, while an existing AUD 50 million operational risk capital add-on will remain in place.