BRIEF-Reserve Bank Of New Zealand Posts Report On Shortcomings With Westpac NZ’S Risk Governance

Reserve Bank of New Zealand: * 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 Further company coverage: