Big four: Parliament’s economics committee has a crack at bank culture

Parliament’s economics committee says it remains “deeply concerned” about cultural problems in the banking sector, with ANZ in the firing line.

The latest review of the big four banks — released in the shadow of a Federal Election — warned the nation’s top lenders had not fully learned the lessons of the 2017 Hayne Royal Commission.

“The committee remains concerned about ongoing cultural and governance challenges within the banks,” chair Daniel Mulino said.

“Recent developments, such as the increase in variable bonus caps for lenders, and ASIC’s investigation into alleged misconduct by ANZ, demonstrate that parliamentary scrutiny of bank conduct remains essential.”

The big four paid almost $4 billion since the Royal Commission in compensation for misconduct. That included reparations for a widespread practice of charging customers without offering any service.

ANZ copped the biggest whack, with the committee expressing “significant concern over reports of incidents” in the bank’s markets division.

It follows a string of big issues for the $87 billion bank which were revealed last year.

ANZ apologised to the Australian Office of Financial Management, which manages Federal Government borrowing, for filing incorrect data. Traders in the bank’s Sydney office were investigated for behavioural issues.

The Australian Securities and Investments Commission is also investigating the Melbourne-based bank for suspected market manipulation following a $14 billion Treasury bond sale in 2023.

The committee took aim at Commonwealth Bank — Australia’s biggest business — for lifting the cap on banker bonuses. Others quickly followed.

The cap was increased from 50 per cent of base pay to 80 per cent in a move Commonwealth said was a response to competition from non-bank lenders.