Bad apples not to blame

ANZ boss says failings were the fault of culture

ANZ chief executive Shayne Elliott says structural issues and internal processes should cop the brunt of the blame for misconduct across the banking sector, and not “a few people with bad intentions”.

Mr Elliott told the House of Representatives’ economics committee yesterday that blaming banks’ well-publicised failings on greed risked sparing institutions from facing up to necessary systemic and cultural change.

“(Putting it down to greed) takes us down the path of blaming it on a few bad apples and a few people with bad intentions,” Mr Elliot (pictured) said.

“I don’t believe that’s right. I think our processes and governance structure have a lot to do with it.”

Both Mr Elliott and the interim chief executive of National Australia Bank, Philip Chronican, were being grilled by federal politicians yesterday about how they were responding to the damning findings of the banking royal commission.

Commonwealth Bank boss Matt Comyn and Westpac chief executive Brian Hartzer were questioned by MPs earlier this month.

Mr Elliott told MPs in Canberra the royal commission had been a “profoundly humbling experience” that had been completely justified by the changes under way across the sector.

When asked about any unintended consequences from putting bankers in jail, Mr Elliott said people should pay the consequences of poor behaviour or misconduct or breaking the law

“I guess the real question here ... I would have thought the right outcome here is not how many people are in jail but do we have a fully functioning financial system that’s responsible and that generates the right outcome for our customers,” he said.

Deputy chief executive Alexis George confirmed that ANZ had 650 outstanding complaints from the Australian Financial Complaints Authority as of yesterday.

She said the bank had more than doubled remediations and settlements over the past two years to $200 million, with another $365 million flagged in September as well as $150 million in related costs.

Mr Elliott said that amount was likely to increase in the short term but was hopeful it would reduce over the medium term, though he did not give a target.

“If we are well managed and well run we shouldn’t have any remediations,” he said.

Mr Chronican was set to face the committee yesterday afternoon.