July 7, 2021

The five biggest Australian banks have the worst management, according to the latest APSA survey.

The findings follow a damning report on the financial crisis which found that Australia’s five biggest financial institutions had a financial risk to their businesses of more than $500 billion.

The APSA’s chief executive, Tim Evans, called for the banks to change.

“It’s time for our banks to show leadership and start acting in the national interest by implementing a robust and proactive framework for managing financial risk,” Mr Evans said in a statement.

“I have always believed that our banks are the only institution that can be trusted with the riskiest financial instruments, including the debt markets.

We must be prepared to change, and change now.”

The APSA said the banks’ management had been poor in the past, with “weak” controls on the trading of their financial products.

However, it said the problem was worse in some areas.

The banks’ performance in the APSA “significantly deteriorated” between 2012 and 2014, when the global financial crisis hit, it found.

In total, it identified nine areas of management problems.

It said the banking industry was “in dire need of major changes” and the banks should focus on improving the “perception of risk” in the financial system.

The banks were grouped into three main categories: “strong management” and “weak management”.

In the weak category, the banks had “poor performance in a number of areas, including compliance, internal controls and supervision” as well as “low financial risk” and poor risk management.

According to the APS, the five banks in the weakest category had “the lowest level of operational risk”.

“This indicates the banks are unable to effectively and effectively manage their financial positions,” Mr. Evans said.

Among the 10 banks that had the best performance in this category, eight were “strongly developed” and four were “in-house”.

According the AP SSA, the top three banks were Bank of America, Citigroup and HSBC, while the bottom three were Western Union, National Australia Bank and BNP Paribas.

The APS also highlighted that the banks were “not operating effectively as a company”.

It said the top two banks had the highest risk exposure to financial markets, and the bottom two had the lowest risk exposure.

“While these banks have a financial management framework that is in line with our own assessment of financial management, their management systems do not meet the standards that we expect from banks and their operations do not reflect our own expectations of a responsible and effective financial system,” Mr Evan said.