The Australian Prudential Regulation Authority (APRA) has removed a $500 million capital surcharge imposed on National Australia Bank (NAB) in response to problems identified in its risk governance self-assessment.。

In response to its non-financial risk management and risk culture weaknesses, APRA implemented a $500 million capital surcharge in July 2019.。Following a prudential investigation into the Commonwealth Bank of Australia, APRA asked the country's 36 largest banks, insurers and pension trustees to conduct risk governance self-assessments.

At the time, the Australian Financial Supervisory Authority said it would continue to implement the capital surcharge until NAB had completed its remediation plan and made up the shortfalls identified in its self-assessment.。APRA to NAB has now completed its remediation plan and fully addressed the issue。As a result, APRA eliminated $500 million in additional capital, effective immediately.。

APRA member Therese McCarthy Hockey said: "NAB is a well-funded and well-capitalised institution, however it is equally important that the entities we regulate have an effective governance and risk management culture.。If regulatory entities fall short in these areas, APRA will not hesitate to enforce。"