Deloitte says Westpac NZ has made progress on liquidity risk management

Westpac New Zealand has improved its liquidity risk management processes. Photo / NZME

Westpac NZ has welcomed the findings of an independent review by Deloitte into the bank's liquidity risk controls and risk culture, and says it is concentrating on completing the remaining actions.

Deloitte's report was released today by the Reserve Bank of New Zealand (RBNZ).

The RBNZ had required Westpac NZ to commission the review following the identification of breaches of its Liquidity Policy (BS13) and potential non-compliance identified through the RBNZ's liquidity thematic review.

Westpac NZ chief executive, Catherine McGrath, said she was pleased with the progress documented in the review.

"The report by Deloitte found Westpac NZ had improved its liquidity control environment and did not identify any material control gaps or issues.

"However, we agree that further refinements can be made and we'll be building that into our continuous improvement activity.

"Our team has put significant effort into enhancing our risk culture and we were pleased to see that acknowledged in the report. We will continue to maintain a strong focus in these areas.

"Westpac NZ's current liquidity and funding positions are sound, and the bank is well capitalised."

RBNZ deputy governor Christian Hawkesby said it was encouraged to see that Westpac NZ had taken the necessary steps to improve its liquidity risk management and risk culture by increasing its resourcing and improving its governance processes.

"We expect that the momentum built to date will allow Westpac NZ to continue the overall transition from a reactive, to a proactive risk culture."

"We appreciate Westpac NZ's cooperation with the review process and maintain our assessment that Westpac NZ's financial position is sound."