News: WBC Reserve Bank Of New Zealand Posts Report On Shortcomings With Westpac NZ’S Risk Governance

Nov 25 (Reuters) - Reserve Bank of New Zealand NZCB.UL :

• EXTERNAL REPORT HIGHLIGHTS MATERIAL SHORTCOMINGS WITH WESTPAC NZ’S RISK GOVERNANCE
• INDEPENDENT REPORT INTO WESTPAC NEW ZEALAND’S RISK GOVERNANCE HIGHLIGHTED MATERIAL SHORTCOMINGS IN BOARD’S OVERSIGHT
• RBNZ INSTRUCTED WESTPAC NZ TO COMMISSION INDEPENDENT REPORT TO ADDRESS CONCERNS, STEMMING FROM MATERIAL COMPLIANCE ISSUES
• "RISK GOVERNANCE OF WESTPAC NZ’S BOARD NEEDS TO SEE SIGNIFICANT IMPROVEMENT"
• THE REPORT, PREPARED BY CONSULTING FIRM OLIVER WYMAN, CONFIRMED THAT CONCERNS WERE WELL FOUNDED
• REPORT NOTED THAT ROLE PLAYED BY BOARD FELL SHORT OF THE STANDARD EXPECTED OF AN ORGANISATION OF THE BANK’S SCOPE AND SCALE
• NOTE THAT WESTPAC NZ HAS ALREADY MADE PROGRESS TOWARDS IMPLEMENTING THE REVIEW’S RECOMMENDATIONS
• EXPECT WESTPAC NZ TO PRIORITISE REMEDIATION IN LINE WITH THE REPORT’S RECOMMENDATIONS
• REPORT FOUND THERE HAD BEEN HISTORIC UNDERINVESTMENT IN RISK MANAGEMENT CAPABILITIES AT THE BANK
• ISSUES THAT HAD BEEN ACKNOWLEDGED BY THE BOARD FOR SEVERAL YEARS HAD NOT RECEIVED DUE ATTENTION OR EFFECTIVE REMEDIATION

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