Following the Banking Royal Commission, Commonwealth Bank of Australia (ASX:CBA) introduced a Remedial Action Plan, outlining the steps its board and senior leaders would take to respond to the Inquiry’s 35 recommendations.
APRA’s latest review found that CBA has made significant progress in implementing the Remedial Action Plan. As a result, the operational risk overlay imposed on CBA is being halved immediately from $1 billion, down to $500 million.
This reduction represents an increase in Common Equity Tier 1 capital of 17 basis points.
APRA noted that there is still a substantial amount of work to do before the bank’s Remedial Action Plan is fully implemented and embedded across CBA.
Commbank’s CEO Matt Comyn says the bank remains committed to strengthening its governance, accountability and risk culture frameworks.
Shares in Commonwealth Bank of Australia (ASX:CBA) are trading 0.47 per cent lower at $78.50.