Leave capital to APRA: Gonski

The Financial System Inquiry "should be commended for its principles-based approach and for referring a number of its recommended changes to the banking system to APRA," David Gonski, chair of ANZ, told the bank's annual meeting in Melbourne yesterday.

Gonski said ANZ maintained a consistent performance and "remains as one of the world's strongest banks, a conclusion recognised in the final report of the Financial System Inquiry."

"We believe APRA and the other government authorities steered Australia's banking system well during the Global Financial Crisis. We have a good working relationship with APRA and have a great deal of respect for its people," Gonski said.

"We also support a risk-based approach to capital management and the adoption of measures to maintain a strong domestic financial system."

ANZ CEO, Mike Smith, suggested the bank was well placed to make its own choices around capital.

"We have built a super regional bank by strategically investing capital in our business in Asia to establish a unique competitive position in the highest growth region of the world," Smith said.

"We have also created a leaner, lower risk bank with higher quality earnings, more capital, more liquidity and a better funded balance sheet.

"These gains highlight just how much investment we are putting into the growth of our Australian and our New Zealand businesses as they are our core to our strategy and they are receiving every dollar of capital that they need to grow."