Australia and New Zealand Banking Group (ANZ) is seriously mulling to off load some of its stakes in Asian banks, as the bank is reeling under Australian capital requirements regulation.
If the bank tries to meet its domestic capital base rule, it will have to shun of its banking business in the Asian pacific region, as reported by the Reuters.
ANZ chief executive Mike Smith said how Australia’s smallest ‘Big Four’ bank will be able to touch their profit goals; they have decided to acheive from their overseas operations.
According to an estimate, Australia and New Zealand Banking Group has ownership in eight banks in the region including 39% in PT Panin Indonesia Bank, 24% in AMMB in Malaysia, 20% in Shanghai Rural Commercial Bank and 17.6% in Bank of Tianjin in China.
Although, ANZ has requested Australia’s banking regulator to ease the capital requirement rules pertaining to holding minority stakes in overseas banks.
Smith was quoted by Reuters as saying that if the Australian Prudential Regulation Authority does not rule in ANZ’s favor, then the bank would consider selling down its minority stakes.
"It does mean you have to look at your options," Smith added.