Commonwealth Bank hit by A$1bn op risk add-on
Capital charge applied for poor management of operational, compliance and conduct risks
The Commonwealth Bank of Australia has been slapped with a A$1 billion ($744 million) add-on to its operational risk capital requirement, following the conclusion of an inquiry into its governance, culture and accountability by the Australian Prudential Regulation Authority on May 1.
The adjustment to the CBA’s op risk regulatory buffer, equivalent to a A$12.5 billion increase in its risk-weighted assets, is effective from April 30 – the date on which the bank entered into an “enforceable
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