(Updates with a response from APRA in the last paragraph.)
Westpac Banking (ASX:WBC, NZE:WBC) bankers, including business banking chief Paul Fowler were questioned by the Australian Prudential Regulation Authority (APRA) this week over a range of shortcomings in the company's small-business lending operations, the Australian Financial Review reported Friday, citing sources with knowledge of the matter.
APRA talked to more than 20 Westpac bankers after an internal report from late April flagged lax supervision and controls within the bank's small and medium-sized business unit, including violations of credit limits and unsatisfactory risk management, according to the report.
The regulator declined' request for comment, while Westpac did not immediately reply to an email.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)