Due to governance risks and the corporate culture discovered through self-assessments, Australia’s prudential regulator is now forcing Westpac, ANZ Bank and National Australia Bank to hold an extra $500m each in capital.

This order for comes eight months after the three banks, along with 33 other financial institutions, submitted detailed self-assessments of their management governance and culture.

APRA chairman Wayne Byres said that self assessments, which were ordered after a scathing inquiry into the Commonwealth Bank’s culture and governanc had revealed “complexity, unclear accountabilities, weak incentives and cultures that have been too accepting of long-standing gaps” in the banks

Westpac, ANZ and NAB have to hold the additional capital until they complete customer remediation program and fix the problems identified in the self-assessments.

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