Basel III 'constrains' ANZ in Asia: Hodges

Lender's deputy chief executive says risk of 'regulatory fragmentation' is real.

Australia and New Zealand Banking Group Ltd deputy chief executive Graham Hodges says the bank's Asian operations are facing regulatory constraints from the Basel III rules, The Australian reports.

"The risk around regulatory fragmentation is real, and it's the banks that are sort of caught trying to do that international model that are probably more at the centre of that," he said, according to the newspaper.

"Over time I would expect there will be more influence coming from our region here in terms of how you frame future policy and I would think that would be a positive," he said, The Australian reports.

According to the newspaper, Mr Hodges said under Basel III many regulators were forcing foreign banks to form subsidiaries rather than branch structures which limited ANZ's ability to unleash "the strength of a global balance sheet of a AA-rated bank".

"That does put some constraints on what activity you can have in some markets," he said.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles