Sydney, Feb 5, 2026, 17:22 AEDT — after hours
- Shares of Macquarie Group fell following APRA’s decision to reduce liquidity add-ons on Macquarie Bank.
- The regulator lowered the Net Cash Outflow add-on from 25% down to 15% and scrapped the stable funding adjustment.
- Investors are now focused on the timing of the remaining overlays, with a briefing scheduled for Feb. 10.
Macquarie Group Ltd (MQG.AX) shares slipped 0.65% to close at A$212.44 on Thursday, following a move by Australia’s banking regulator to loosen liquidity restrictions on its banking arm.
This shift is significant because APRA’s add-ons compel the bank to maintain extra cash and funding buffers, which can drag down returns and limit balance-sheet flexibility. The partial rollback signals some confidence in the remediation efforts but doesn’t close the case entirely.
The market remains swift to penalize any hint of persistent compliance risk. Investors are wary after witnessing too many so-called “fixed” control gaps resurface.
APRA announced it has eased the liquidity add-on requirements for Macquarie Bank, initially set in 2021 and 2022, after the bank addressed issues in its liquidity risk management and reporting controls. The Net Cash Outflow (NCO) add-on dropped from 25% to 15%, and the Available Stable Funding (ASF) adjustment has been lifted with immediate effect.
The NCO add-on is part of the Liquidity Coverage Ratio, which checks if a bank holds enough high-quality liquid assets to cover short-term cash demands. On the other hand, the ASF adjustment impacts the Net Stable Funding Ratio, designed to assess funding stability over the long haul.
APRA confirmed the remaining NCO add-ons will stay in place until it’s confident the outstanding remediation work is finished and fully embedded. The regulator also said the separate A$500 million operational risk capital overlay will remain unchanged.
Macquarie acknowledged the regulator’s move, yet its shares dropped over 1.5% at one stage before clawing back some ground by the close. The S&P/ASX 200 ended the day 0.43% lower.
Traders on Friday will be eyeing whether the initial selloff expands into a broader reevaluation of Macquarie’s regulatory challenges — easing concerns around liquidity, but leaving capital worries intact.
The risk is clear: if APRA doubts the durability of the fixes, those remaining overlays could stick around longer than investors anticipate. A new misstep in reporting would quickly ramp up scrutiny, with the share price usually moving before the full story emerges.
All eyes are on Macquarie’s 2026 operational briefing scheduled for Tuesday, Feb. 10 at 10:00 a.m. AEDT. Investors will be keen for updates on how remediation is progressing and any hints about when the remaining conditions might be lifted.
