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Version 1 Version 2
Banking inquiry: ANZ chief Shayne Elliott apologises for failings – live Banking inquiry: victim tribunal 'a good idea', says ANZ chief – live
(35 minutes later)
12.41am BST
00:41
Pat Conroy has asked about ANZ’s return on equity in its credit card business
Shayne Elliott repeats a similar objection to the CBA that it is “difficult for us to disclose without giving away competitive information”.
He accepts the return on equity for credit cards is higher and “well above” average but says it is “decreasing at a fairly fast rate”.
12.36am BST
00:36
The Labor MP Pat Conroy has asked if Shayne Elliott is confident that bank managers don’t put pressure on tellers to refer customers to financial planners after they’d already met their minimum targets.
The chief executive said: “No, and I’m not necessarily sure that’s a bad thing.”
If we believe having good conversations with specialists is a good thing, then generally more is better.
If staff feel under duress, pressure or are harassed there are avenues for them to discuss that.
Updated
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12.33am BST
00:33
Gareth Hutchens
With the ANZ hearings under way, it appears National Australia Bank has now banned all political donations.
NAB’s board of directors says it “resolved in May 2016 that the making of any political donations would cease with immediate effect”, according to its policy statement on political donations.
The document says NAB recognises it has an important role to play in Australia’s political process, and in the development and promotion of policy, but it now believes that can be better achieved by avoiding making political donations altogether.
Therefore, “from May 2016 NAB ceased making political donations at the Commonwealth, State and Local Government level”.
It means the federal Liberal, Nationals, and Labor parties will lose a crucial source of political funding:
Updated
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12.30am BST
00:30
Asked about the fact the ANZ has referred 45 breach reports to Asic in the last year, Shayne Elliott replied:
We are raising the standards at which we operate ... when we find problems, we report them.
Elliott said there are about 2,000 people in the financial planning division, which the Labor MP Pat Conroy calculates is about one in 40 subject of breach reports.
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12.26am BST
00:26
'Not enough' of most senior ANZ bank executives are women: Elliott
Shayne Elliott has addressed ANZ’s diversity policy and the Male Champions of Change program.
He replied:
My key objective is that we have an open, transparent, fair and diverse workforce.
Elliott says, of its senior leadership, 40% are held by women but “not enough of the most senior roles”.
The Liberal MP Julia Banks asked if Elliott has read her maiden speech because of her warnings of the need for unconscious bias training. He has not.
Elliott says the bank has done an “extraordinary amount” of such training but he is not sure at which levels and how far down the bank it has extended.
Updated
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12.20am BST
00:20
The Liberal MP Julia Banks has asked about an “endemic blokey culture” at the bank, including reports of sexist banter and attendance at strip clubs.
Shayne Elliott agrees that “culture is key”.
Asked about two employees sacked over code of conduct violations who then launched unfair dismissal claims exposing this culture, he replied:
It is in their interests to make such allegations. Unfortunately there were a small number of people in the markets division that behaved appallingly. When we found out, we acted immediately.
Updated
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12.13am BST
00:13
Matt Thistlethwaite has asked – same as yesterday – whether the chief executive is prepared to return if the committee asks. Shayne Elliott gives a simple answer: “Yes.”
Updated
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12.12am BST
00:12
Matt Thistlethwaite is quizzing the ANZ executives about league tables for performance of branches.
The bank’s chief executive, Shayne Elliott, says league tables do exist but branches are not just measured on the one metric of sales but also customer feedback and their performance relative to their opportunity (based on where the bank is located).
Updated
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12.05am BST12.05am BST
00:0500:05
Katharine MurphyKatharine Murphy
While the bank hearings are underway, the prime minister Malcolm Turnbull has been on the ABC in Brisbane. While the bank hearings are under way, the prime minister, Malcolm Turnbull, has been on the ABC in Brisbane.
He’s been grilled about how this parliamentary inquiry compares with a royal commission, which has subpoena powers, and would have a long period to interrogate witnesses, as opposed to a process where individual committee members face time limits of ten or fifteen minutes. He has been grilled about how this parliamentary inquiry compares with a royal commission, which has subpoena powers, and would have a long period to interrogate witnesses, as opposed to a process where individual committee members face time limits of 10 or 15 minutes.
Turnbull’s response to the time limits was to suggest the committee recall the bank CEOs “as often as they like.” Turnbull’s response to the time limits was to suggest the committee members recall the bank CEOs “as often as they like”.
The prime minister suggested the committee move to extend the hearings if they don’t feel like sufficient time has been given to pursue the issues. The prime minister suggested the committee move to extend the hearings if members didn’t sufficient time had been given to pursue the issues.
The prime minister (who declared himself earlier in the interview as “a businessman, who had gone into politics at the age of 50”, and an “activist”) has told his host Steve Austin: The prime minister (who declared himself earlier in the interview as “a businessman, who had gone into politics at the age of 50”, and an “activist”) has told his host, Steve Austin:
I understand the banking industry and I understand what’s wrong with it.I understand the banking industry and I understand what’s wrong with it.
He says the problem with banks is they are insufficiently transparent and accountable to their customers. He said the problem with banks was they were insufficiently transparent and accountable to their customers.
That’s why “my government” (as opposed to, as he said, earlier in the interview, “Tony’s government”) had insisted on the parliamentary hearings for the banking CEOs.That’s why “my government” (as opposed to, as he said, earlier in the interview, “Tony’s government”) had insisted on the parliamentary hearings for the banking CEOs.
Over time this will change the culture of accountability in the banks.Over time this will change the culture of accountability in the banks.
Updated
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12.03am BST12.03am BST
00:0300:03
Shayne Elliott has been quizzed about dealings with Indian tycoons Pankaj and Radhika Oswal. The bank reached a legal settlement with the pair over a dispute about the winding up and sale of their Australian fertiliser business Burrup Holdings. Shayne Elliott has been quizzed about dealings with the Indian tycoons Pankaj and Radhika Oswal. The bank reached a legal settlement with the pair in a dispute about the winding up and sale of their Australian fertiliser business Burrup Holdings.
Mr Oswal allegedly forged documents to show the company had the support of European banks ahead of getting a further $1bn in loans from ANZ. Pankaj Oswal allegedly forged documents to show the company had the support of European banks before getting a further $1bn in loans from ANZ.
Elliott explained the bank continued to advance the business credit because claims of forgery were just allegations and Oswal had withdrawn an admission relating to it.Elliott explained the bank continued to advance the business credit because claims of forgery were just allegations and Oswal had withdrawn an admission relating to it.
At that stage and it was in the interests of the bank for the project to go ahead, because a “half finished” fertiliser plant would be “worth nothing”. At that stage and it was in the interests of the bank for the project to go ahead, because a “half-finished” fertiliser plant would be “worth nothing”.
Updated
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11.54pm BST11.54pm BST
23:5423:54
Labor’s Matt Thistlethwaite is asking about ANZ financial planners that have been banned by ASIC, including one banned for 10 years as a result of falsifying documents, and one that is contesting a one year ban after resigning from the bank. Labor’s Matt Thistlethwaite is asking about ANZ financial planners that have been banned by Asic, including one for 10 years as a result of falsifying documents, and one who is contesting a one-year ban after resigning from the bank.
ANZ chief executive Shayne Elliott explained: ANZ’s chief executive, Shayne Elliott, explains:
We have not - to date - specifically advised those clients [that their advisers have been banned], we are going to. There is a gap in our process – we should [advise their clients]. We have not –to date – specifically advised those clients [that their advisers have been banned]; we are going to. There is a gap in our process – we should [advise their clients].
To check how common it is for financial planners to be banned, take a look at Guardian Australia’s big timeline of banking scandals.To check how common it is for financial planners to be banned, take a look at Guardian Australia’s big timeline of banking scandals.
Updated
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11.49pm BST11.49pm BST
23:4923:49
ANZ chief thinks bank victim tribunal "a good idea" ANZ chief thinks bank victim tribunal 'a good idea'
Asked about a bank victim redress tribunal, Shayne Elliott says the only consideration is that it must be “simple and effective for customers”.Asked about a bank victim redress tribunal, Shayne Elliott says the only consideration is that it must be “simple and effective for customers”.
I think it’s a good idea, we have no issue with a bank tribunal.I think it’s a good idea, we have no issue with a bank tribunal.
Commonwealth Bank chief executive, Ian Narev, raised some practical considerations but no objection to this tribunal when asked on Tuesday. Commonwealth Bank’s chief executive, Ian Narev, raised some practical considerations but no objection to this tribunal when asked on Tuesday.
Labor’s financial services spokeswoman, Katy Gallagher, labelled the plan put forward by backbench Coalition MPs for a bank tribunal to grant victims compensation a “stitch up” designed to avoid a royal commission. Labor’s financial services spokeswoman, Katy Gallagher, labelled the plan put forward by backbench Coalition MPs for a bank tribunal to grant victims compensation a “stitch-up” designed to avoid a royal commission.
11.47pm BST
23:47
Shayne Elliott says ANZ will enable customers to transfer data to other banks but “we have to make sure that our customers are protected in the process”.
Asked if ANZ had resisted proposals facilitate portability of accounts to help customers switch banks, Elliott replied:
As an institution we may have, but I haven’t and at this point today we don’t oppose it at all.
11.40pm BST
23:40
CEO defends reinstatement of employees under Bank Bill Swap Rate cloud
Shayne Elliott is explaining what has happened to individuals at the bank whose conduct has been questioned by the Australian Securities and Investments Commission which has taken action against ANZ for alleged unconscionable conduct and manipulating the Bank Bill Swap Rate between 2010 and 2012.
He said two employees had been fired for violating the banks code of conduct, but the rest had been reinstated after initially being stood down.
Because we’ve done our own internal investigations and believe they’ve done nothing wrong.
Elliott said the individuals whose conduct had resulted in ASIC legal action against the bank had not been charged as individuals.
11.35pm BST
23:35
Under questioning from the committee chairman, David Coleman, the ANZ chief executive, Shayne Elliott, has admitted the bank overcharged 400,000 customers fees it was not entitled to.
The bank paid back $2.9m in fees. He explained the overcharging was caused by a “misinterpretation around terms and conditions of those fees” for moving money between accounts.
Elliott said processes had been improved but he couldn’t say whether there were disciplinary consequences for the mistake.
UpdatedUpdated
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11.32pm BST
23:32
Shayne Elliott has addressed failings in ANZ’s farm lending business Landmark, which it acquired in 2010.
He accepted the bank should have worked better with customers, especially when they were already in difficulty.
This was wrong, we were too slow to fix it and we apologised.
On Timbercorp, Elliott said the bank had worked with liquidator to help investors in financial distress but had not recommended people invest in the scheme.
Updated
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11.27pm BST
23:27
Shayne Elliott is now addressing the interest rates the ANZ charges.
“We need our lending rates to be as low as possible to attract and retain business,” he said.
He explained the sources of funds are: equity invested by shareholders; deposits, which account for only 50% of funds for borrowing; and international borrowings.
When the RBA changes rates it directly impacts some but not all of our funding costs.
Updated
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11.24pm BST
23:24
The chief executive has explained that ANZ made a profit of $7.5bn last year, but said “we’re a very large business assets of $900bn”, and that amounts to less than 1 cent for every dollar the bank holds.
The trend of returns in the last decade at ANZ has decreased from almost 20% down to little over 12%, Elliott said.
Updated
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11.23pm BST
23:23
CEO Shayne Elliott starts with an apology for ANZ failings
The ANZ chief executive, Shayne Elliott, has got the mea culpa part of appearing before a parliamentary committee out of the way early, offering this apology in his opening statement:
In truth we’ve not always met the standards we’ve set for ourselves or that the community rightfully expects of us. Each time we fall short we potentially harm a customer or a member of the community, and for that I apologise.
Updated
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11.18pm BST
23:18
And we’re off! The ANZ witnesses at the table are: the chief executive, Shayne Elliott, and the deputy chief executive, Graham Hodges.
A reminder or notice for those who weren’t following on Tuesday, the House of Representatives economics committee examining the big four banks is chaired by the Liberal MP David Coleman. Its deputy chair is Labor’s Matt Thistlethwaite.
The other members are: Liberals Craig Kelly, Julia Banks, Scott Buchholz and Trevor Evans; the Nationals’ Kevin Hogan; Green Adam Bandt; and Labor’s Pat Conroy and Matt Keogh.
For those who’d like to watch along a live stream is available here.
Updated
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11.06pm BST
23:06
The Australian Bankers’ Association chief executive, Steven Münchenberg, has told ABC News Breakfast on Wednesday that sackings should “absolutely” be part of disciplinary consequences if bank employees have done the wrong thing.
We have acknowledged, as an industry, and we heard that from the CBA boss yesterday, that we have not always lived up to expectations.
Münchenberg defended high credit card rates to cover the risk of debts that aren’t recovered, and said mortgages that track the official cash rate were not popular when they were offered overseas.
On financial advice and conflicts of interest, he said:
We’ve actually announced an independent review of the way in which ... bank staff are paid … and we’ve indeed committed to removing or changing any payments that do lead to poor customer outcomes.
Updated
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10.45pm BST
22:45
Timbercorp scandal and credit card fees to feature at ANZ hearing
Welcome to our live blog of day two of parliamentary committee hearings into the big four banks.
On Tuesday the committee heard from the Commonwealth Bank, whose chief executive, Ian Narev, revealed that nobody had been sacked for the CommInsure denial of insurance payout scandals.
Today it is the turn of ANZ, with hearings to run from 9.15 to 12.15 AEDT.
Labor plans to ask ANZ’s chief executive, Shayne Elliott, about the Timbercorp scandal, financial planners banned from the bank and remuneration structures that encouraged staff to offer financial advice unfit for customers.
ANZ is being pursued in the courts – along with NAB and Westpac – by the Australian Securities and Investments Commission over alleged unconscionable conduct and manipulating the Bank Bill Swap Rate between 2010 and 2012.
The Liberal MP Craig Kelly plans to raise credit card fees. In August Kelly told Guardian Australia the high court had weakened consumer protections when it rejected a class action against ANZ for charging late fees of $35.
After the first day of hearings Labor and the Greens made it clear they will continue to push for a full royal commission. Let’s see if they are more satisfied with the answers provided by ANZ.
Comments for the live blog are open – so please contribute your take on proceedings below. You can contact me on Twitter @Paul_Karp.
Updated
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