ANZ Bank Seeks Government Support for Viable Pacific Operations Amid Chinese Influence Concerns

ANZ Bank is discussing with the Australian government how to sustain its business in the Pacific Islands. CEO Shayne Elliott indicated that rising risk management costs threaten profitability despite Australia's support to enhance banking systems in the region. ANZ aims to counter increasing Chinese influence through these efforts.

ANZ Bank is currently engaging in discussions with the Australian government to explore methods to make its operations in the Pacific Islands more feasible. The rise in costs associated with risk management has put a strain on these businesses, making it difficult to cover the cost of capital, according to CEO Shayne Elliott.

As the largest lender in the Pacific, with activities in nine countries including Fiji and the Cook Islands, ANZ plans to maintain its presence in the area even though mounting financial pressures could have led to a shutdown if the decision were purely commercial. 'We have a higher obligation,' Elliott stated while emphasizing his responsibility to the bank's shareholders. He added that the government could play a role in helping the bank achieve sustainability.

The ongoing discussions have not yet identified specific measures to improve profitability, but Elliott suggested that standardizing certain services, such as anti-money laundering and know-your-customer protocols, across multiple markets could help reduce costs. This comes as Australia pledges increased investment to bolster banking systems in the Pacific in the face of heightened Chinese influence.

(With inputs from agencies.)