ANZ Bank Chief Executive Nuno Matos is set to face a rigorous interrogation by a parliamentary committee as the financial institution confronts a record-breaking $240 million penalty for extensive misconduct.
Unprecedented Fine and Allegations
The corporate regulator has accused ANZ of serious failings, including mishandling a bond sale that potentially cost the federal government $26 million. In a particularly damaging revelation, the bank stands accused of misconduct affecting nearly 65,000 retail customers, with one of the most shocking allegations being the failure to refund fees charged to thousands of customers who had died.
ANZ has agreed to accept the penalty, which represents the largest ever imposed on a single entity by the regulator, though the Federal Court must give its final approval. The bank incorrectly reported bond trading data to the government by tens of billions of dollars, creating significant discrepancies in official records.
Bank's Defence and Industry-Wide Scrutiny
Despite the admissions, ANZ maintained that the government suffered no actual financial loss from the bond sale. The bank emphasised that while it breached some licensing obligations, it hasn't been accused of market manipulation or over-hedging.
Committee chair Ed Husic expressed strong views on the matter, telling AAP that the bank had 'got off lightly' and that the fine 'should have been higher'. The Labour MP's comments suggest the parliamentary scrutiny will be intense when Matos appears before the committee.
The banking sector faces broader examination, with National Australia Bank chief executive Andrew Irvine also scheduled to appear. This follows recent sessions with Commonwealth and Westpac bosses, indicating a comprehensive review of banking practices.
Broader Financial Reforms and Job Cuts
The parliamentary inquiry also addressed significant payment system reforms. The Reserve Bank is reviewing the nation's payment infrastructure and has suggested removing surcharges on eftpos, Mastercard and Visa cards, a move that could save consumers more than $1 billion annually.
Commonwealth Bank chief executive Matt Comyn expressed general support for the proposal 'in essence' but cautioned against implementing changes too hastily, highlighting the complexity of payment system reforms.
In a separate development signalling internal restructuring, ANZ announced plans to reduce its workforce by eight per cent across its institutional and retail divisions in 2025, adding another layer of challenge for the embattled institution.
