APRA has cancelled a liquidity add-on obligation placed on Bendigo and Adelaide Bank for violating APRA’s rules on availability of cash.
APRA took action against Bendigo in 2020 because the bank repeatedly broke the rules regarding APS 210 Liquidity. This showed that Bendigo had problems with managing risks and accurately reporting its liquidity ratios.
A 10 percent increase was added to the amount of money that Bendigo needed to have in liquid assets. This was included in the calculation of the bank’s Liquidity Coverage Ratio (LCR).
Bendigo has recently assessed its compliance with APRA’s liquidity rules. And made a plan to fix any issues, which APRA is pleased with. Starting today, Bendigo no longer has to meet the extra liquidity requirement.
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