The Australian Prudential Regulation Authority has imposed a A$50 million operational risk capital add-on and additional licence conditions on ING Bank Australia after finding material breaches of the bank's liquidity requirements, the regulator announced on 3 September 2026.
APRA also raised the Sydney-based lender's minimum liquidity requirements and required it to commission independent reviews into the causes of its liquidity reporting failures and its broader risk management and governance practices. APRA said it views ING Australia as financially resilient, but that its breaches of liquidity prudential requirements are serious.
LCR MISCALCULATIONS OVER SEVERAL YEARS
APRA said its findings related to miscalculations of the Liquidity Coverage Ratio (LCR) over several years. According to the regulator, ING Bank Australia reported an LCR of around 160% when the true figure was substantially lower, and at times the ratio actually fell below the 100% minimum required under the prudential standard. ING Australia has since taken steps to raise its liquidity position to well above APRA's minimum requirements.
The 100% minimum LCR requirement is set by Prudential Standard APS 210 Liquidity.
APRA said ING Australia notified it in July 2026 that it had identified material miscalculations of its liquidity position over several years.
CAPITAL ADD-ON AND INDEPENDENT REVIEW
APRA said the A$50 million operational risk capital add-on is intended to address heightened operational risk and potential broader weaknesses in ING Australia's prudential reporting. APRA said the capital add-on, higher liquidity requirement and licence conditions will remain in place until ING Australia has completed the required work to its satisfaction.
In addition to the capital add-on, APRA increased the minimum liquidity requirements applicable to ING Bank Australia and imposed additional conditions on its banking licence. The bank must also commission independent reviews into the causes of its liquidity reporting failures and its broader risk management and governance practices, develop a comprehensive remediation plan, and provide independent assurance that the remediation actions have been effectively implemented and embedded.
APRA said ING Australia's minimum liquidity requirements had been increased to ensure it operates prudently while it addresses the underlying drivers of its liquidity reporting failure.
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