The Reserve Bank requires banks to maintain a minimum amount of operational risk capital, which is determined relative to the risk of each bank's business. This increases the minimum capital ANZ must hold for operational risk by around 60 per cent, to $760 million, the Reserve Bank said. According to the Reserve Bank, it "had encouraged" ANZ to review its attestation process - through which bank directors assess whether the bank is complying with the conditions of its regulations. The onus is then on bank directors to ensure, and attest, that their bank is compliant with the Reserve Bank's regulatory requirements. "As part of its current capital review, the Reserve Bank is reviewing its capital framework for banks," the Reserve Bank said in its statement on ANZ.

Source: Stuff May 17, 2019 01:12 UTC