APRA imposes licence conditions on ING Bank over liquidity reporting breaches

APRA has imposed additional licence conditions on ING Bank (Australia) Limited (ABN 24 000 893 292) requiring an independent review of the root causes of the bank’s liquidity coverage ratio (LCR) breaches and capital reporting inaccuracies, together with a remediation plan to be implemented within two years. The instrument, signed by Shieh Ling Wong, General Manager of the General Insurance and Banking Division and a delegate of APRA, was made under subsection 9AA(1)(a) of the Banking Act 1959 and was published in the Commonwealth of Australia Gazette as Government Notice C2026G00589, registered on 4 September 2026. The additional conditions came into force on 3 September 2026.

The decision follows a series of self-reported failures by the bank. ING Bank (Australia) reported LCR breaches to APRA on 24 July 2026 and communicated related errors on 13 July, 4 August, 5 August and 20 August 2026. APRA set out its additional prudential concerns in a letter to the bank dated 24 August 2026, which the conditions require the independent reviewers to take into account.

Independent review of root causes

Within 30 business days of the commencement date, ING Bank (Australia) must propose one or more suitably qualified independent persons for APRA’s written approval to conduct the independent review. The scope of engagement must cover:

• the root causes of the LCR breaches, including any identified by the bank before the commencement date;
• the adequacy and effectiveness of the bank’s liquidity risk reporting framework;
• the accuracy of its prudential reporting for capital across the Capital Reports (ARF 110 to ARF 330); and
• the adequacy of its governance, risk culture, control environment, risk management framework and assurance arrangements.

The reviewers must deliver a draft report within 80 business days of the scope being approved, provide monthly updates to both APRA and the bank, and the bank must appoint one or more Accountable Persons to oversee the review.

Remediation plan and independent assurance

Within 15 business days of receiving the final review report, the bank must propose an Independent Expert for APRA’s approval. A draft remediation plan must be provided to the Independent Expert and to APRA within 30 business days, and the final plan must be approved by the ING Bank (Australia) board. The bank must implement the plan within two years of board approval and report progress to APRA no later than the last day of every quarter.

The Independent Expert must provide progress reports every three months and a final assurance assessment confirming the changes are appropriately designed, effectively implemented and operating as intended. The bank must also provide attestations from its relevant Accountable Persons, the board chair and the chair of the board risk or audit committee, and must give weight to these obligations in decisions on the suitability, performance and variable remuneration of the Accountable Persons and senior managers involved.

Accountability and significance

The conditions also require the bank to reflect the new obligations in the Accountability Statements of relevant Accountable Persons under the Financial Accountability Regime Act 2023, and to consider the discharge of these responsibilities in remuneration decisions. Any extension of time must be sought from APRA in writing at least seven business days before the deadline.

The instrument is a notable template for APRA’s remediation and accountability regime, tying a prudential breach to a structured, independently assured remediation process with named accountability and remuneration consequences. For the banking sector, it signals that liquidity and capital reporting failures will be met with enforceable licence conditions that run for years and carry explicit consequences for senior management.

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