Large 4: Parliament’s economics committee has a | Australian Markets
Parliament’s economics committee says it stays “deeply concerned” about cultural issues within the banking sector, with ANZ within the firing line.
The latest review of the massive 4 banks — launched within the shadow of a Federal Election — warned the nation’s high lenders had not totally discovered the teachings of the 2017 Hayne Royal Fee.
“The committee remains concerned about ongoing cultural and governance challenges within the banks,” chair Daniel Mulino stated.
“Recent developments, such as the increase in variable bonus caps for lenders, and ASIC’s investigation into alleged misconduct by ANZ, demonstrate that parliamentary scrutiny of bank conduct remains essential.”
The large 4 paid virtually $4 billion for the reason that Royal Fee in compensation for misconduct. That included reparations for a widespread observe of charging prospects with out offering any service.
ANZ copped the largest whack, with the committee expressing “significant concern over reports of incidents” within the bank’s markets division.
It follows a string of massive points for the $87 billion bank which have been revealed final yr.
ANZ apologised to the Australian Workplace of Monetary Administration, which manages Federal Authorities borrowing, for submitting incorrect information. Merchants within the bank’s Sydney workplace have been investigated for behavioural points.
The Australian Securities and Investments Fee can also be investigating the Melbourne-based bank for suspected market manipulation following a $14 billion Treasury bond sale in 2023.
The committee took goal at Commonwealth Financial institution — Australia’s largest business — for lifting the cap on banker bonuses. Others rapidly adopted.
The cap was elevated from 50 per cent of base pay to 80 per cent in a transfer Commonwealth stated was a response to competitors from non-bank lenders.
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