Apra lacks resources to tackle banking culture, says boss at royal commission – live | Australia news

Byres: "We must think about the best use of our resources

"The proposal I was trying to say was that all organizations do not need a revision at the CBA, or the other organization on which we carried out the pilot project. We must therefore balance and effectively target our resources where they are most needed. "

Byres says that there are resource constraints to Apra.

Apra has a highly qualified staff in the field of culture, but it does not have enough. If she wanted to conduct a thorough culture review at several Australian banks at the same time, she would need external consultants.

Commissioner Kenneth Hayne wants to know if Mr. Byres is of the opinion that there is no major cultural problem within Australian banks.

Byres said he did not share this view. It's just that Apra does not have the resources to tackle the problem with several revisions to the CBA.

Byres says that the ABC survey was a "fabulous" job.

He said this was helpful for Apra, as it allowed her to understand that her regular supervisory work – prior to the CBA investigation – had not had a great influence on her behavior.

Hodge: "The regular supervision activity has not been as effective or as effective in bringing about cultural change?"

Byres: "It was not fully effective, it's just. We had some success but we continue to fight.

Hodge: "But the problem is from Apra's point of view, that of resources, to be able to deploy it in other financial institutions?

Byres: "Yes."

Hodge request Byres Apra's decision around 2016 to try to put more emphasis on "culture" and "risk culture" within Australian financial institutions.

Byres said Apra had come to the opinion that it would be beneficial to lead journals whose main purpose is to evaluate the culture of a bankrather than including the culture part-time, in addition to or in addition to another main activity.

In June 2017, Apra formulated a pilot program for a risk culture review. As part of this program, Apra would conduct an independent badessment of each institution's risk culture.

However, Apra quickly ran into resource constraints. Some Apra staff members had to be rebadigned to the ABC investigation.

Apra is ready to "straighten out the bastard" and to be more steadfast with the banks to help combat widespread mistakes.

In its more aggressive approach, the prudential regulator can force the big Australian banks to change the compensation of their senior executives reduce the focus on financial results.

President Apra Wayne Byres acknowledged that the regulator should have earlier flagged inadequate remuneration practices at the Commonwealth Bank following the CBA scandals in 2016.

The Apra team that oversaw the CBA was aware of most of the issues identified in its investigation – released last May – according to a June 2018 paper revealed at the Royal Bank Inquiry, published yesterday.

The document referred to the "half-breed" of supervision and the need to strengthen support for the "intestinal sensation" of supervision.

The reference to the bastard was inspired by words of separation on the rally of troops of the chairman of the Prudential Investigation Committee and former APRA President John Laker after a meeting with the council of administration of the regulator.

Hello everyone.

We are back on Guardian Australia's live blog on the Royal Bank Commission.

Wayne Byres, the president of the Australian Prudential Regulation Authority (Apra), is back in the chair.

Apra is the "prudential" regulator, which means that its job is to ensure that Australian banks and insurance companies remain financially strong and respect their obligations to policyholders, fund members and the depositors.

Apra was established in 1998 as a result of a Wallis Inquiry Commission recommendation.

Senior Lawyer Assistant Royal Commission, Michael Hodge QC, leads the questions.

Hodge focuses on Apra's approach to risk culture.