The US-based Fitch Ratings is out with its take on the Australian banking sector, with the key findings noted below.
“Addressing shortcomings in operational risk frameworks remains a significant challenge facing many Australian banks.
May ultimately pressure the Outlook and ratings on some institutions.
Cites a paper published by the Australian Prudential Regulation Authority (APRA) on 22 May:
Need for better non-financial risk-management;
Accountabilities not always being clear, cascaded or effectively enforced;
Acknowledged weaknesses are well-known and some have been long-standing;
And risk culture not being well understood and therefore may not be reinforcing the desired behavior. “
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