Days later, Bendigo Bank was scolded by the regulator over risk failures when APRA imposed formal licence conditions, citing “longstanding and pervasive” weaknesses that had persisted despite years of remediation under the bank’s internal BEN+ risk transformation program.
“We participated fully and constructively with the review, which was recently completed and resulted in APRA imposing licence conditions on the Bank on 18 August 2026,” Carter and Fennell wrote. “The key requirements of the licence conditions include: preparation of a comprehensive rectification plan in line with APRA’s directions; appointment of an independent reviewer; and implementation of the rectification plan. This is a critical priority for the Bank and one we are fully committed to delivering.”
The execs pledged to work collaboratively with the regulators to ensure the bank gets its ship in order. “As your Chair and CEO, we accept we have more to do to ensure the Bank is meeting the expectations of all stakeholders in the management of risk and continue playing our part in delivering a stronger banking system for all Australians.”
Home lending contracts, business lending picks up slack
Against that backdrop, Bendigo Bank’s home lending performance for the financial year ending 30 June showed the bank losing ground.
Residential lending fell 0.4% over the year to $66.4 billion, with the contraction standing in sharp contrast to the broader market: the Reserve Bank of Australia‘s August 2026 Statement on Monetary Policy recorded total housing credit growth of 7.5% year-on-year in the June 2026 quarter.
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