ANZ ATM Bank
The scandal could hit ANZ CEO's annual bonus. Wikimedia Commons

ANZ CEO Shayne Elliott denied that suspected misconduct by its employees during a 2023 government bond issuance had led to taxpayers losing money.

Market regulator Australian Securities and Investments Commission (ASIC) is probing one of Australia's largest retail banks for presenting incorrect data on monthly secondary bond trading to the federal government in 2023, AAP reported.

"There has been speculation that potential misconduct by ANZ in connection with this issuance may have cost taxpayers," Elliott submitted before a parliamentary committee on Friday. "From what I have seen, there is no evidence of this. I've not seen any evidence, any of the data that supports any misconduct, market manipulation or otherwise, from ANZ."

Elliott stated that three employees have quit and the bank's reputation suffered because of the scandal.

"We're right in the middle of doing our annual performance assessments of individuals ... there's no doubt that reputational damage will impact the assessment of some if not many," said.

The scandal could hit Elliott's annual bonus, which the board will decide next week, reported Reuters.

"I get paid on those issues and get evaluated once a year. As it happens, that process has just started. I imagine that there absolutely will be consequences," Elliott said.

He said the people were managing the tough conditions despite struggling with high living costs, and added that those in business have been hit hard by the slow economy.

Apart from ASIC, ANZ is probing the staff's involvement in government bond issuance, misreporting bond trading data and misconduct by the staff in the bond trading unit.

Appearing before the committee, NAB chief executive Andrew Irvine said that Australia now has a "two-speed economy."

Those in the mining and resource sectors, and people living in Western Australia, Queensland, and the Northern Territory were faring well despite challenging economic conditions. In contrast, people in the southeastern states, along with those in the retail and construction sectors, were experiencing greater difficulties, Irvine said.

He urged the government to control inflation, as he highlighted the high interest rates paid by Australians.