CBA (ASX:CBA) share price in focus after APRA Remedial Action Plan update

The Commonwealth Bank of Australia (ASX:CBA) share price could be on the move today after a positive update on its APRA Remedial Action Plan…

| More on:
CBA share price represented by branch welcome sign

Image Source: Commonwealth Bank

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today after the release of a positive update this morning.

What did CBA announce?

This morning Australia’s largest bank revealed that APRA has completed the review into the progress it has made against the Prudential Inquiry Remedial Action Plan and made a decision in relation to the bank’s operational risk capital as part of the Enforceable Undertaking.

According to the release, APRA’s validation review found that Commonwealth Bank has made significant progress in implementing its Remedial Action Plan.

As a result, the operational risk overlay imposed on the bank has now been reduced from $1 billion to $500 million with immediate effect.

Management notes that this reduction represents an increase in Common Equity Tier 1 capital of 17 basis points.

Commonwealth Bank’s Chief Executive Officer, Matt Comyn, said: “We welcome APRA’s acknowledgment of the progress we have made over the past two years. At the same time, we and APRA recognise there is still a substantial amount of work to do before our Remedial Action Plan is fully implemented and embedded across CBA.”

“We remain committed to achieving these outcomes and to ensuring the improvements to strengthen governance, accountability and risk culture frameworks, practices and outcomes are sustained,” he added.

What was the Remedial Action Plan?

In June 2018 the bank revealed its Remedial Action Plan which outlined the steps its board and senior leaders will take to respond to the Prudential Inquiry’s 35 recommendations.

This followed an inquiry which identified a number of shortcomings in the bank’s governance, culture, and accountability frameworks, particularly in dealing with non-financial risks. This includes a shortcoming related to Anti-Money Laundering and Counter-Terrorism Financing (AML-CTF) matters.

Commonwealth Bank intends to provide its next update on its progress in February 2021.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

The word inflation written with a ticking time bomb.
Share Market News

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

Key points The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell Expectations …

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format
Bank Shares

Goldman tips Bank of Queensland (ASX:BOQ) share price to rise 25%

If you’re interested in gaining exposure to the banking sector, then it could be worth considering Bank of Queensland Limited …

Read more »

An arrow going upwards with a road sign saying 'IPO ahead'.

New listing mania: Could 2022 be another record year for ASX IPOs?

Key points The IPO outlook for 2022 is optimistic Last year saw the highest number of new floats on the …

Read more »

An oil miner with his thumbs up.
Energy Shares

Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?

Key points AGL was one of the worst performing ASX 200 shares of 2021 But 2022 has given this company …

Read more »

share price dropping
Share Fallers

Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling

In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with on a positive note. …

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

These 3 ASX 200 shares are topping the volume charts this Friday

Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a …

Read more »

surprised asx investor appearing incredulous at hearing asx share price
Broker Notes

Top broker sees 43% upside for the Westpac (ASX:WBC) share price

Key points The Westpac share price is down 24% from its highs Morgans believes this has created a buying opportunity …

Read more »

an arrow with sparks shoots up
Consumer Staples & Discretionary Shares

Why is the Dusk (ASX:DSK) share price firing 15% higher today?

Key points Dusk shares are bouncing off a 3-month low today. Shares are soaring 15% into the green at the …

Read more »