The head of the Anglican Diocese in Grafton has resigned over the way allegations of abuse at a NSW north coast childrens home were handled.

Bishop Keith Slater on Friday apologised for his past failings in managing the allegations of physical, psychological and sexual abuse at the North Coast Childrens Home in Lismore between 1940 and the 1980s.

"As a sign of my recognition of these matters and in the hope that it may contribute towards healing and wholeness for those who are abused I forthwith resign from being the Bishop of the Diocese of Grafton," he said in a statement.

Bishop Slater said the diocese had received a number of allegations of abuse at the home between the 1940s and 1980s.

The alleged perpetrators included staff, visiting clergy, members of holiday host families and other residents.

Bishop Slater said an audit of the diocese's professional standards protocol in November 2012, in response to the royal commission into sex abuse, showed protocols had not always been applied "specifically in matters associated with claims of abuse at the North Coast Childrens Home".

He said he acknowledged that he had failed to ensure compliance with the protocol.

"Some matters detailing sexual abuse at the North Coast Childrens Home were not referred to the Professional Standards Director as they should have been," he said.