APRA imposes licence conditions on ING Bank after liquidity breaches

APRA has imposed additional licence conditions on ING Bank (Australia) Limited (ABN 24 000 893 292) after the bank reported breaches of its liquidity coverage ratio (LCR) and errors in its prudential reporting. The instrument, C2026G00589, was registered in the Commonwealth of Australia Gazette on 4 September 2026 and took effect on 3 September 2026.

The conditions were imposed by Shieh Ling Wong, General Manager of the General Insurance and Banking Division and a delegate of APRA, under subsection 9AA(1)(a) of the Banking Act 1959. The decision is dated 2 September 2026 and applies to the bank’s section 9 authority to carry on banking business in Australia.

Background: reported breaches and errors

The conditions respond to what the instrument defines as the “LCR Breaches” — breaches reported by ING Bank (Australia) to APRA on 24 July 2026 regarding the calculation and reporting of its liquidity coverage ratio, together with related errors the bank communicated to the regulator on 13 July, 4 August, 5 August and 20 August 2026.

APRA also cites “Additional Prudential Concerns” set out in its letter to the bank dated 24 August 2026, and the status of the bank’s Risk Excellence (RX) Program, established in August 2021 to address an independent review of its risk management framework.

Independent review and remediation

The conditions require the bank to appoint, at its own cost, one or more Independent Reviewers approved by APRA to investigate the root causes of the breaches and the adequacy of its liquidity risk reporting framework. A Remediation Plan must be developed, approved by the IBAL Board, and implemented within two years of board approval.

• Independent Reviewer(s) proposed to APRA within 30 business days of commencement.
• Draft review reports due within 80 business days of the approved scope of engagement.
• A Remediation Plan approved by the IBAL Board, with quarterly progress reports to APRA.
• An Independent Expert engaged to provide assurance that remediation is designed, implemented and operating as intended.

Accountability and attestations

The conditions tie the obligations to the bank’s Accountable Persons under the Financial Accountability Regime Act 2023, requiring attestations from the relevant accountable persons, the Chair of the IBAL Board, and the Chair of the Board Risk or Audit Committee once remediation is complete. APRA also requires the bank to weigh the discharge of these responsibilities in decisions on the suitability, performance and variable remuneration of Accountable Persons, Senior Managers and other involved employees.

The bank may request reconsideration of the decision in writing within 21 days of receiving notice, and may subsequently apply to the Administrative Review Tribunal for review.

Impact

The conditions signal APRA’s tougher enforcement of prudential standards, placing ING Bank (Australia)’s board, senior managers and risk functions under direct regulatory oversight until remediation is completed and independently assured. For the bank’s customers, the measures are designed to strengthen liquidity and risk governance, while the two-year remediation timeline and ongoing attestation requirements will keep the institution under close supervisory scrutiny.

Source: Commonwealth of Australia Gazette, Government Notices, 4 September 2026, p. 1–9 (official reference: C2026G00589).