- ANZ’s Chairman David Gonski revealed the bank’s self-assessment outline
- The company was required to send a detailed assessment of operations to APRA amid fallout from the Banking Royal Commission, however, the original will remain private
- ANZ’s share price is up 0.95 per cent at today’s market close, currently sitting at $26.62 apiece
ANZ’s Chairman David Gonski has addressed the market today, regarding the banking giants self-assessment, amid fallout from the Banking Royal Commission.
David raised his concerns that the Australian financial sector, in recent times, has had “a range of highly regrettable and indeed concerning issues” exposed.
The government agency, Australian Prudential Regulation Authority (APRA), has requested the big banks and insurers to detail a self-assessment going forward. This is designed to be an effort to prevent malpractice in the future.
The self-assessments are encouraged to remain confidential to ensure companies don’t fret to be completely honest. ANZ said it will keep the copy sent to APRA private, although decided to release an outline to shareholders.
While analysing the company’s business model, David said: “We recognise there have been instances where we have failed our customers.” As a result, the company detailed it is taking the self-assessment as a chance to learn from previous failings.
David highlighted areas where change is required within the company. This included a “compliant culture” and focus on “short-term fixes”. Additionally, miscommunications under the senior executive level were prevalent and a company culture of deeming things “all too hard” or as “it’s the way it’s always been” were identified.
Going forward, the bank outlined efforts surrounding simplification, culture, remediation, management of operational risk and governance and accountability will be taken to improve the business.
“We know there is a significant amount of work ahead and the ultimate measure of success will be the removal by APRA of the additional capital overlay,” David said.
However, on implementing the new strategies ANZ feels comfortable it will combat the issues which have been flagged within the company.
ANZ’s share price is up 0.95 per cent at today’s market close, currently sitting at $26.62 apiece.