(Reuters) -Australian prudential regulator on Friday said it has increased the capital add-on requirement for lender ANZ Group ( ANZGF ) to A$750 million ($502.73 million), reflecting escalating worries about the bank's management of non-financial risks.

In a move underscoring persistent regulatory concerns about ANZ's risk management practices, the Australian Prudential Regulation Authority had previously mandated a A$500 million operational risk capital add-on for the bank in 2019, citing inadequacies in its risk governance framework.

This regulatory development follows a tumultuous period for Australia's fourth-largest lender, which recently suspended several traders from its markets division amid allegations of misconduct, stemming from reports of suspected misrepresentation in government bond trades by bank personnel.

"While ANZ has launched several investigations into these issues, these issues raise prudential concerns that ANZ has yet to adequately address deficiencies in controls, risk culture, governance and accountability," the regulator said in a statement.

($1 = 1.4919 Australian dollars)