ANZ secures $2b govt guarantee for Pacific banking services
Make us a preferred source
Make us a preferred source on Google
The news: Big four lender ANZ has announced that the federal government will provide a 10-year limited guarantee to the bank's operations in the Pacific.
The numbers: The maximum amount of the guarantee is $2 billion. It includes an annual fee payable by ANZ to the government.
As part of the arrangement, ANZ will invest a further $50 million in its Pacific banking systems to enhance its digital banking offering and support ongoing operations in the region.
The context: The guarantee includes a commitment by ANZ to maintain its existing fee-free offering for international money transfers via the bank's retail digital channels into the Pacific over the 10-year period, to help support the flow of funds and remittances into the region.
ANZ said the guarantee is "not material" for the bank at a group level, but the arrangement will support a "more resilient and sustainable ANZ Pacific business".
The bank — which has operations in Fiji, Papua New Guinea, Samoa, Vanuatu, Tonga, Solomon Islands, Timor-Leste, Kiribati and the Cook Islands — said it will also continue to encourage financial literacy in the region through its MoneyMinded program.
What they said: "This arrangement with the Australian government highlights our shared commitment to continuing to provide access to safe, trusted banking services in the Pacific Island region," said ANZ chief executive Shayne Elliott.
"While doing business in the Pacific can be complex, we're committed to our role in advancing economic development, critical infrastructure and payment networks across the region."
The source: ASX
