APRA eases extra liquidity requirements for Bendigo Bank

The news: APRA has lifted the extra liquidity requirements it imposed on Bendigo and Adelaide Bank after a 2020 action against the bank for multiple breaches of prudential standards.

The numbers: The regulator had previously required that Bendigo add 10% to the net cash outflow component of the bank's liquidity coverage ratio. After the announcement Wednesday morning, Bendigo's share price lifted 0.44% to $9.13.

The context: Bendigo has completed an internal review into adherence with APRA's requirements and has implemented a remediation plan. At the time of the action, APRA said the soundness of Bendigo's liquidity position was not impacted by the infringements, but the regulator was serious about any breaches of prudential requirements.