Australia's banking regulator imposed a A$50 million capital add-on on ING Australia after the lender overstated its liquidity position over several years, according to an announcement by the Australian Prudential Regulation Authority on September 3, 2026.
ING's reported liquidity coverage ratio, a measure of a bank's ability to meet short-term obligations, reached approximately 160 percent when the bank's actual position was substantially lower and at times fell below the 100 percent regulatory minimum. The bank notified APRA of the miscalculations in July 2026.
APRA characterized the breaches as material and the result of operational deficiencies spanning multiple years. The capital add-on functions as an operational risk charge imposed on top of ING's existing regulatory capital requirements. The regulator said it remained confident in the bank's overall financial resilience despite the breaches.
ING operates as a major retail and commercial lender in Australia, competing with the Big Four banks. The bank's Australian unit holds deposits and extends credit across consumer and business segments. Liquidity coverage ratios are core metrics in the Basel III regulatory framework that all large banks must maintain above the 100 percent threshold to ensure they hold sufficient high-quality liquid assets to withstand a 30-day stress scenario.
APRA has issued similar capital add-ons and enforcement orders to other institutions after discovering deficiencies in risk management infrastructure or data integrity. The regulator took enforcement action against ING after the bank disclosed its calculation errors.
ING's A$50 million add-on represents a material but contained enforcement response relative to its Australian equity base and earnings. The bank faces no suspension of operations or restrictions on its deposit-taking license as a result of the action.
The specific watch item for APRA and market participants is whether ING submits a credible remediation plan detailing how it will prevent future liquidity calculation errors and strengthen its operational controls before the regulator assesses whether the capital add-on should persist beyond its initial period.
