ANZ announced a collaboration with the Australian Government aimed at reinforcing its banking services in the Pacific region. The agreement includes a limited guarantee from the Australian Government for a duration of 10 years, covering up to AUD$2 billion of ANZ's current Pacific operations. The government assesses a low probability of this guarantee being utilized, with ANZ required to pay an annual fee for this assurance.
Part of the arrangement involves ANZ investing an additional $50 million into its Pacific banking systems to improve digital banking services and maintain ongoing operations. ANZ has also committed to keeping its fee-free International Money Transfers via retail digital channels into the Pacific, supporting the flow of funds and remittances to the region.
Shayne Elliott, ANZ Chief Executive Officer, stated, “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. ANZ has been in the Pacific for more than 140 years and it continues to be an important part of our international network.”
Elliott also commented on the complexities of doing business in the Pacific but reaffirmed ANZ's commitment to fostering economic development, infrastructure, and payment networks. He added, “We will continue to connect Pacific customers to trade and investment opportunities, 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.”
Elliott noted that while the guarantee is not significant at the group level, it will enhance the resilience and sustainability of ANZ’s Pacific business for the region's future.
ANZ, one of the few AA- rated banks in the Pacific, employs over 1,200 people across the area and has invested approximately AUD$95 million in infrastructure and technology in the past five years. The bank is also committed to advancing the financial literacy of Pacific communities through its MoneyMinded program, which has reached over 70,000 people since 2011.
The guarantee is expected to take effect in the second half of 2025, pending legislative approval. ANZ operates in several Pacific countries, including Fiji, Papua New Guinea, Samoa, and others.