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Banking inquiry: victim tribunal 'a good idea', says ANZ chief – live Banking inquiry: ANZ has 'appetite' to reconsider credit card interest rates – live
(35 minutes later)
1.13am BST
01:13
Shayne Elliott reveals ANZ’s credit card business makes “a couple of hundred million dollars” out of its total profit of $7.5bn. He accepts that movements in funding costs “unless they are extreme” are not going to have a significant impact on the bank’s profits.
1.11am BST
01:11
Labor’s Matt Keogh makes a declaration before beginning his questions:
Dollarmites yesterday, today @mattkeogh admits to having one of ANZ's "high interest, high fee" credit cards...
1.00am BST
01:00
ANZ has "appetite" to reconsider credit card interest rates
Shayne Elliott says ANZ has an “appetite” to consider restructuring its credit card products.
He concedes the headline interest rate on credit card rates may be too high and could be changed so that there is a “better correlation between pricing and risk”.
Liberal MP Scott Buchholz heralds the concession (without a commitment) as “a good day for Australians”.
12.55am BST
00:55
Liberal MP Scott Buccholz has challenged the proposition in Shayne Elliott’s opening statement that ANZ wants credit card rates to be “as low as possible”.
The chief executive qualifies that he meant: “as low as possible, competitively”.
Deputy chief executive, Graham Hodges, says the bank has run a trial with 1% of its customers who showed signs of financial hardship to suggest they use different products like a different credit card.
Some were “quite offended” others found it “very helpful”, he said.
12.45am BST
00:45
Pat Conroy has asked whether the government and Reserve Bank implicitly subsidise the big four banks to the tune of $3.7bn because of the fact they are “too big to fail”.
The deputy chief executive, Graham Hodges, disputes that this constitutes “government support”.
Rather it is the markets and ratings agencies which have a view that Australian banks have a higher credit rating because of a perception that authorities would step in in the event of financial crisis, he says.
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Pat Conroy has asked about ANZ’s return on equity in its credit card business 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”. Shayne Elliott repeats a similar objection to the CBA’s, 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”.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”.
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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 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.” The chief executive sys: “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 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.If staff feel under duress, pressure or are harassed there are avenues for them to discuss that.
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12.33am BST12.33am BST
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Gareth HutchensGareth Hutchens
With the ANZ hearings under way, it appears National Australia Bank has now banned all political donations.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.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.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”. 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: It means the federal Liberal, National and Labor parties will lose a crucial source of political funding:
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12.30am BST12.30am BST
00:3000:30
Asked about the fact the ANZ has referred 45 breach reports to Asic in the last year, Shayne Elliott replied: Asked about the fact the ANZ has referred 45 breach reports to Asic in the last year, Shayne Elliott replies:
We are raising the standards at which we operate ... when we find problems, we report them.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. Elliott says there are about 2,000 people in the financial planning division, which the Labor MP Pat Conroy calculates is about one in 40 subject to breach reports.
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'Not enough' of most senior ANZ bank executives are women: Elliott'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.Shayne Elliott has addressed ANZ’s diversity policy and the Male Champions of Change program.
He replied: He replies:
My key objective is that we have an open, transparent, fair and diverse workforce.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”. Elliott says, of the bank’s senior leadership roles, 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. The Liberal MP Julia Banks asks if Elliott has read her maiden speech because of her warnings for 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.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.
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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.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”.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: Asked about two employees sacked over code of conduct violations who then launched unfair dismissal claims exposing this culture, he replies:
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.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.
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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.”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.”
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Matt Thistlethwaite is quizzing the ANZ executives about league tables for performance of branches.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).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).
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Katharine MurphyKatharine Murphy
While the bank hearings are under way, 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 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.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 members 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 members didn’t sufficient time had 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 said the problem with banks was they were 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.
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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.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.
Pankaj Oswal allegedly forged documents to show the company had the support of European banks before 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”.
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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.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’s chief executive, Shayne Elliott, explains: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.
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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’s 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.
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