April 30, 2018 / 10:59 PM / in 7 months

BRIEF-Commonwealth Bank of Australia Responds To APRA's Prudential Inquiry

May 1 (Reuters) - Commonwealth Bank of Australia:

* RESPONSE TO APRA’S PRUDENTIAL INQUIRY

* TO IMPLEMENT ALL RECOMMENDATIONS OF APRA’S PRUDENTIAL INQUIRY AND ENTERS INTO ENFORCEABLE UNDERTAKING

* CONFIRMED IT WILL IMPLEMENT ALL RECOMMENDATIONS FROM REPORT OF PRUDENTIAL INQUIRY RELEASED BY APRA

* APRA WILL APPLY A CAPITAL ADJUSTMENT TO CBA’S MINIMUM CAPITAL REQUIREMENT BY ADDING $1 BILLION TO BANK’S OPERATIONAL RISK CAPITAL REQUIREMENT

* “WE NOW HAVE A DETAILED ROADMAP FOR ONGOING CHANGE AND WE WILL WORK WITH APRA TO ENSURE WE IMPLEMENT ALL OF REPORT’S 35 RECOMMENDATIONS”

* CBA MAY APPLY FOR REMOVAL OF ALL OR PART OF CAPITAL ADJUSTMENT WHEN IT BELIEVES IT CAN DEMONSTRATE COMPLIANCE, TO APRA’S SATISFACTION

* ADJUSTMENT’S EFFFECT EQUATES TO 29 BASIS POINTS OF COMMON EQUITY TIER 1 CAPITAL & REDUCES CBA’S DEC. 31 2017 CET1 RATIO FROM 10.4 PERCENT TO 10.1 PERCENT

* AN ESTIMATE OF EXPECTED FINANCIAL COST OF PROGRAM FOR 2019 FY WILL BE DISCLOSED AS PART OF CBA’S ANNUAL RESULTS ANNOUNCEMENT

* APPOINTING INDEPENDENT REVIEWER, APPROVED BY APRA, TO REPORT TO APRA EVERY 3 MONTHS COMMENCING SEPT. 30 2018 Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below