APRA has removed the A$500 million capital add-on it imposed on National Australia Bank in response to issues identified in the bank’s risk governance self-assessment. APRA imposed the $500 million capital add-on in July 2019 in response to non-financial risk management and risk culture weaknesses identified in the bank’s self-assessment published in late 2018.  NAB was one of 36 of the country’s largest banks, insurers and superannuation trustees that APRA asked to undertake risk governance self-assessments in the aftermath of the Prudential Inquiry into Commonwealth Bank of Australia. At the time, APRA indicated the capital add-on would stay in place until NAB had completed its remediation program and closed the gaps identified in its self-assessment. APRA yesterday said it was “now satisfied that NAB has completed its remediation program and adequately addressed the issues raised in its risk governance self-assessment. As a result, APRA has removed the $500 million capital add-on effective immediately” NAB in a statement said “the removal of this requirement follows NAB’s completion of its Governance & Risk Transformation program, which was established to address the 26 recommendations identified in the Self-Assessment.    “The recommendations related to bringing the voice of the customer firmly into the bank, improving the rigour and discipline of delivery, strengthening accountability and risk management practices, overhauling the approach to issues, and realising the Bank’s desired culture.”  NAB’s Common Equity Tier 1 Capital will increase 18 basis points as a result of the removal of the add-on, based on the group’s capital position at December 2023.   NAB CEO Ross McEwan said: “NAB has worked hard to get the basics right for customers and colleagues and address the root causes of the issues identified in the Self-Assessment. “There’s more to do and we will continue to build on the significant improvements made to governance, risk and culture.”