Westpac NZ’s risky government needs “significant improvement,” RBNZ By Reuters says
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(Reuters) – The New Zealand Reserve Bank (RBNZ) said Thursday that Westpac’s local unit must address risk governance and compliance concerns after an independent report highlighted a “material shortage” in the commission’s oversight.
A report prepared by management consulting firm Oliver Wyman said the bank’s board did not meet “standard” expectations for implementing risk management measures, and said the bank’s investment in risk management capabilities was “more reactive than strategic”.
“We hope Westpac NZ will prioritize repairs in line with the report’s recommendations and will closely monitor their efforts to ensure they are effective,” RBNZ Deputy Governor Geoff Bascand said in a statement https://www.rbnz.govt.nz/. news / 2021/11 / external-report-highlights-material-shortcomings-with-westpac-nzs-risk-governance.
The report was requested by Westpac New Zealand in March following instructions from the RBNZ.
Bascand added that although the bank’s management has addressed some of the report’s conclusions, there is “much more to be done”.
Westpac NZ, in a separate statement, acknowledged the findings of the review and said it was “well advanced” in addressing the report’s recommendations.
“We also immediately followed up on other recommendations in the report, including the restructuring committee and reviewing how to provide risk information to the Board,” added Westpac NZ Board Chairman Pip Greenwood.
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