Australia's banking watchdog ordered National Australia Bank to tighten up slack risk controls, saying its "profit is king" culture led to a A$252-million ($189 million) forex trading scandal.
National Australia Bank (NAB), which owns National Irish Bank (NIB) and Northern Bank was also told by the Australian Prudential Regulation Authority (APRA) to raise its capital and keep its currency options trading desk closed.
National bowed to public pressure to release the regulator's report and agreed to comply with the demands and said it would terminate a share buyback scheme.
The report came after the resignation of the bank's chief executive and chairman, the sacking of five traders and three top executives, and an equally critical report into the issue by accountants PricewaterhouseCoopers.
"The response the company has made in terms of management changes and board reshuffle are a clear indication they are taking it pretty seriously. I think at this point the market is pretty happy with their response," said Mr Jack Chemello, fund manager at BT Financial.
National shares edged down 0.4 per cent to A$31.32 on the report, which analysts said would not have a material impact on earnings. Fund managers said the bank's capital position was healthy enough to cope with APRA's demands.