An Anglican bishop on the New South Wales north coast has resigned over his handling of abuse claims at a children's home.

The Anglican Diocese of Grafton received a number of claims in 2006 about acts of physical, sexual and psychological abuse at the North Coast Children's Home in Lismore.

The abuse took place between the 1940s and 1980s.

Thirty-nine of the claims were settled through negotiated payments, but two people did not accept the conditions, and seven others later came forward with similar claims.

The offer of financial compensation was later withdrawn.

The Right Reverend Keith Slater now acknowledges he did not pass on all the complaints to the church's professional standards director as was required.

He says the question of legal liability clouded the issue.

He has apologised to those involved and resigned as bishop.

The church has vowed to cooperate with the current royal commission.