ANZ Bank
AFP

Australian Treasurer Jim Chalmers said on Monday that the government was close to reaching an agreement with ANZ group about maintaining nine regional hubs, including those in Fiji and the Cook Islands.

The in-principle agreement would typically ensure continued financial services to nine countries in the region. The deal is part of Australia's bid to keep its banks in the Pacific region and ensure that a vacuum does not occur, where Chinese banks can move into, ABC reports.

Australia was trying to cash in on ANZ's Pacific presence, which was the largest among any Australian banks -- 19 branches across 9 countries -- as Western banks were failing to align with international banking standards, cutting ties with their counterparts and incurring losses in the sparsely populated region.

"This will ensure ANZ's nine existing operations -- from Fiji to the Cook Islands -- maintain their services," Chalmers told the Australian Institute of International Affairs on Monday night. "The deal we're working on is another big part of our efforts to keep communities and economies connected, and finance flowing in our neighborhood."

An ANZ spokesperson confirmed that the bank was in talks with the government.

"We play an important role in connecting customers to the growing trade and investment opportunities in the Pacific Islands region, as well as providing links into our home markets of Australia and New Zealand, and across our international network in Asia, the Middle East, Europe and the United States," the unidentified spokesperson said. "We welcome the opportunity to provide ongoing access to banking services in the Pacific Island region with the support of the Australian Government."

But establishing a solid presence in the Pacific region will be quite the challenge for Australia in the face of growing Chinese influence, Reuters reported.

As Beijing has been negotiating defense, trade, and finance deals with Pacific island governments, its influence has been expanding.