ANZ shares have slipped as much as three per cent after New Zealand's central bank revoked the ability of the bank's local subsidiary to autonomously assess its risk capital requirements due to "persistent weakness" in its processes.
ANZ NZ's minimum capital level will rise by about 60 per cent to $NZ760 million ($A721 million) after the Reserve Bank of New Zealand said it will now have to use the standardised approach for calculating operational risk capital.
RBNZ deputy governor Geoff Bascand said in a statement on Friday that self-assessment accreditation was earned through high risk management standards and retained through stringent adherence to those standards.
"ANZ's directors have attested to compliance despite the approved model not being used since 2014," he said.
"The fact that this issue was not identified for so long highlights a persistent weakness with ANZ's assurance process."
ANZ shares slipped on the news and, at 1435 AEST, were still 74.5 cents, or 2.79 per cent, lower at $25.915.
They were the worst performing of all the big four bank shares, all of which were lower despite a rise in the overall market.
