APRA Penalizes ING Australia for Liquidity Requirement Breaches

The Australian Prudential Regulation Authority (APRA) has imposed strict license conditions and financial penalties on ING Bank Australia Limited after the bank committed material breaches of minimum liquidity requirements. ING Australia notified the regulator in July that miscalculations spanning several years led to a significant overstatement of its Liquidity Coverage Ratio (LCR). While the bank reported ratios around 160 percent, the actual figures occasionally fell below the mandatory 100 percent threshold.

In response, APRA imposed a $50 million operational risk capital add-on and increased the bank's minimum liquidity requirements. The regulator is also requiring the bank to commission independent reviews into its governance and risk management practices and develop a formal remediation plan.

APRA Deputy Chair Therese McCarthy Hockey stated that the breaches are not simply a reporting error and raise fundamental questions about the effectiveness of the bank's internal controls. Despite these failures, the regulator noted that the bank remains financially resilient and well capitalized, benefiting from the strength of the broader ING group.