ASX Announcement - NAB Receives Advanced BASEL II Accreditation

Monday, 30 June 2008

National Australia Bank (NAB) has been advised by the Australian Prudential Regulation Authority (APRA) that it has received accreditation under the Basel II Advanced Internal Ratings Based approach for credit risk for its Australian, New Zealand and nabCapital operations from 1 July 2008. The Reserve Bank of New Zealand also confirmed that it had accredited Bank of New Zealand for advanced credit risk, effective from 1 July 2008.

Accreditation was achieved in 2006 for Traded Market Risk, with effect from 1 January 2007, and for Operational Risk in 2007, with effect from 1 January 2008. The Group's UK business, regulated by the Financial Services Authority (FSA), commenced Standardised accreditation for Operational Risk and Credit Risk from 1 January this year, and will move to advanced accreditation at a time to be agreed with APRA and the FSA.

National Australia Bank Group Chief Executive Officer, John Stewart, commented: "Advanced accreditation is a major achievement for the Group and reflects the significant investment in sophisticated risk management capabilities and the hard work by the many employees involved in this important initiative.  Advanced accreditation for credit risk under Basel II will deliver improved decision-making, and enable closer alignment of capital requirements to underlying risks - both of which are key to our ongoing success in today's challenging markets."

Accreditation on Interest Rate Risk in the Banking Book is expected prior to 30 September 2008.

Details of the Group's capital position under Basel II will be disclosed at the time of the full year results announcement on 31 October 2008 and comprehensive Basel II information will be included in APS 330 disclosures in November 2008. 

For further information:

Media
Brandon Phillips
M: +61 (0) 419 369 058 

Investor Relations
Hany Messieh
M: +61 (0) 414 446 876

Lyndal Kennedy
M: +61 (0) 400 983 038