Westpac Banking (ASX:WBC, NZE:WBC) plans to revamp how it configures compensation and bonuses for small business bankers in an effort to deal with risk management problems flagged by the Australian Prudential Regulation Authority (APRA), the Australian Financial Review reported Thursday, citing anonymous bank insiders.
APRA recently informed Australia's big four banks of risk management deficiencies in lending to small and medium-sized enterprises, telling them that bankers should face repercussions if they violate policies, according to the report.
Westpac is implementing a new system under which violations of risk parameters or other oversights could result in bankers receiving lower annual bonuses and cuts to their performance ratings, the report said, citing a staff memo and presentation.
The bank did not immediately respond to a request for comment from.
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