The Australian banking regulator has confirmed that Westpac Banking Corporation has completed a multi-year risk transfer programme, removing the final A$500 million additional capital imposed by the Australian Prudential Regulatory Authority (APRA).
The add-on was originally implemented following a 2020 investigation into governance and risk deficiencies at the bank.
Westpac subsequently entered into an enforceable jurisdictional undertaking with APRA and established a Customer Outcomes and Risk Excellence (CORE) program to address the issues identified.
APRA said it was satisfied that Westpac had completed its remedial work and that “the specific precautionary issues identified by APRA have been addressed”.
APRA member Therese McCarthy Hockey said: “As a systemically important bank, APRA expects Westpac to adhere to the required standards of prudent risk management and governance practices. Completing this risk transfer program is a vital step in ensuring these expectations are consistently met.”
The regulator first imposed a total of A$1 billion in additional capital in 2019, removing half of it in July 2024 as progress was made.
With the remaining A$500 million now raised, APRA said it expects Westpac to maintain its “undoubtedly strong capital position” and continue to incorporate effective risk management practices.