Anz ceo shayne elliot faces parliamentary inquiry into banking system

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ANZ boss Shayne Elliott has admitted to a parliamentary committee that changes in the cash rate were only one ingredient in setting interest rates for home loans.

Australian banks did not have sufficient deposits to fund the demand for borrowing, and were required to source funds from both domestic and international capital markets at competitive rates.

So when the RBA changes rates it directly impacts some but not all of our funding cost, Mr Elliott told the House of Representatives economics committee in Canberra on Wednesday.

A new analysis by the Swinburne University of Technology found if the big banks manage to postpone a 25 basis point rate cut in their mortgage interest rates by 10 days, as an example, they can potentially each make an extra $16-26 million in profits.

If some of our cost of funds goes down, the longer we delay, clearly that is to the advantage of the bank, Mr Elliott admitted.

The International Monetary Fund expects interest rates in most parts of the world wont be rising anytime soon, including in Australia.


Earlier today, the only woman on federal parliaments house economics committee took the ANZ boss to task over blokey bank culture, pointing to her own struggle to get a home loan.

New Liberal MP Julia Banks questioned Shayne Elliotts commitment to the group Male Champions of Change during a hearing into the four big banks in Canberra on Wednesday.

Have you taken on the mantle of your predecessor Mike Smith who was a member of the group? she asked the chief executive who took over at the start of the year.

Yes, he replied.

What does that mean to you, she asked.

Mr Elliott said he was committed to having an open, transparent and diverse workforce where everyone had a fair go.

I take the Male Champions of Change pretty seriously. About 40 per cent of senior leadership roles are held by women, he noted.

Not enough of the most senior roles, but we have seen significant improvement in that in the last couple of years. Ms Banks, who won the Melbourne seat of Chisholm from Labor at July federal election, asked the bank boss whether he had read her first speech to parliament.

The former lawyer, who discussed gender equality in her speech, wondered whether Mr Elliott could say from his heart of hearts female customers were treated as fairly as male customers.

This idea that the entire bank has a blokey culture, frankly I reject that, he replied.

Overwhelmingly, branches are run by very, very good women. Ms Banks recalled a story she shared in her speech about applying for her first home loan.

A general manager, smarmy, smirkly ... said that he would only factor into account my husbands income because I was a married woman of child-bearing age even though I was a fully qualified junior corporate lawyer. Mr Elliott agreed with Ms Banks it was a good idea for banks to train all staff to be aware unconscious bias a bias one is unaware of particularly when theyre dealing with female customers.


ANZ has changed its processes after having to repay nearly 400,000 customers almost $29 million in overcharged fees, the committee was told this morning.

The fees were supposed to be imposed on payments made to another person or business, but were wrongly charged to some customers transferring money between their own accounts.

That was a mistake, it was a mistake made in the programming, the algorithm if you will of doing that, CEO Shayne Elliott told the committee.

We have done an audit of that and we have changed our processes in terms of testing and making sure that terms and conditions are transferred into absolute accurate algorithms and charges going forward.

Mr Elliot admitted there would have been consequences for staff who made the mistake, but he would have to come back to the committee with details.

Mr Elliott, who took over the top job at ANZ nine months ago, said each time his bank falls short of what is expected it potentially harms a customer or a member of the community.

For that I apologise, he said.

When we fail our customers, it is my job to take accountability, apologise, fix it for the customer as quickly as possible, and make the changes required to stop it happening again.

Ian Narev CBA chief apologies for the bad experiences any customers have had with CBA