RBNZ says Westpac unit has retained accreditation following compliance review

FILE PHOTO: Pedestrians walk near the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. REUTERS/David Gray/File Photo

WELLINGTON (Reuters) - The Reserve Bank of New Zealand (RBNZ) said on Monday that lender Westpac's WBNAX> local unit has retained its accreditation as an internal models bank following completion of an extensive remediation process.

RBNZ in 2017 had imposed a precautionary capital overlay on Westpac New Zealand in light of the regulatory breaches, and gave Westpac 18 months to remedy the failures or risk losing its accreditation as an internal models bank.

Deputy Governor Geoff Bascand said in a statement that Westpac was now operating with peer-leading processes, capabilities and risk models in a number of areas.

Reporting by Praveen Menon; Editing by Alison Williams