Australia’s prudential regulator, APRA (Australian Prudential Regulation Authority), imposed new license conditions on ING Bank Australia after the bank overstated its liquidity position and at times fell below minimum requirements. APRA increased the bank’s minimum liquidity requirements and added A$50 million ($35.84 million) to its operational risk capital requirement. The action followed ING Australia’s notification in July that miscalculations over several years had inflated its reported Liquidity Coverage Ratios, a measure of a bank’s ability to withstand short-term cash outflows. Although the bank reported an LCR of about 160%, APRA said the actual figure was substantially lower and occasionally fell below the mandated 100% threshold. ING Australia must commission an independent review into the reporting failures, broader risk management and governance practices. CEO Melanie Evans said the bank regretted the deficiencies and was committed to meeting APRA’s standards for risk management, governance and regulatory reporting.