(Reuters) - Australia's prudential watchdog said on Thursday it had accepted a court-enforceable undertaking from ANZ Group ( ANZGF ) to address the lender's non-financial risk management practices and risk culture.

The Australian Prudential Regulation Authority (APRA) also raised the amount of spare cash that the country's No. 4 lender must keep on hand to A$1 billion ($628.50 million) from A$750 million.

In August, the regulator had asked ANZ to conduct an independent review program to determine root causes of its issues.

"APRA has assessed that the completion of this program alone will not effectively and sustainably address the broader non-financial risk weaknesses across ANZ," it said.

ANZ said in a separate statement that it had accepted all recommendations of the review, and was taking immediate actions in response to the review and the undertaking with APRA.

"We are disappointed that we have not met APRA's expectations about how the bank manages non-financial risk and its non-financial risk culture," ANZ Chairman Paul O'Sullivan said.

($1 = 1.5911 Australian dollars)