Behavior and Structure of Anz Bank 2022

Running head: BEHAVIOR AND STURCUTURE OF ANZ BANK 1
Behavior and Structure of ANZ Bank
Student’s Name
Institutional Affiliation

BEHAVIOR AND STRUCTURE OF ANZ BANK 2
Behavior and Structure of ANZ Bank
1.1 Introduction
The ANZ Bank has a great commercial and retail business in both Australia and New Zealand.
The financial institution continues to deliver a rigid financial performance depending on the
market share it gains, and tight cost management with their small and retail enterprise franchises.
In 2016, ANZ serviced over 168,000 individuals, making it the country’s third-largest local
lender. In Australia, the bank supports its small enterprises by providing over two billion dollars
in lending to assist Australians begin new businesses. In New Zealand, ANZ maintained its
position as the largest lender for businesses and housing. The behavior and structure of the
former depend on its Code of Conduct, which requires all contractors and employees to comply
with them. This is because it provides a set of standards and guiding principles that govern
ANZ’s operation. The enterprise is structured across several divisions. In Australia, it comprises
the retail, business, and private bank business units, which provide various banking services.
Institutionally, ANZ business structure focuses on providing services to corporate clients and
global institutions located in New Zealand, Australia, Europe, America, and the Middle East. In
New Zealand, the business structure comprises commercial and retail business units, which focus
on offering multiple banking services. This article identifies the lending demand as the major
challenge facing ANZ Bank, and the multiple measurable symptoms and concepts related to it;
these occasionally affects the business structure.
1.2 Purpose
The purpose of the paper is to focus on lending demand as the major problem affecting the
business structure of ANZ, which can be described in either measurable or observable symptoms

BEHAVIOR AND STRUCTURE OF ANZ BANK 3
it manifests. Additionally, two concepts have been considering the analysis of the lending
demand issue facing ANZ.
1.3 Problem Statement
The main problem facing ANZ is lending demand, which is currently more subdued after a
period of high credit and development costs that are elevating locally and globally from a
cyclical low. Besides, the financial industry faces strain in cost development connected to
compliance and higher technology costs.
LITERATURE REVIEW
2.1 Observable and Measurable Symptoms of ANZ Bank’s Lending Demand
2.1.1 Low Motivation Levels
In spite of ANZ’s efforts in encouraging lending to small businesses, there is still
restriction put forward that discourage low-income earners from taking loans. For instance, the
least individual loan amounts range from 3,000 to 5,000 dollars, which is occasionally more than
what low-income earners need. Conversely, the repayments for such amounts may be
unaffordable based on their expenses. As a result, if the latter is eligible for such a loan, he or she
is encouraged to utilize credit cards, which due to their unstructured nature can intensify
financial challenges. Therefore, low-income earners have low motivation when it comes to
taking loans.
At least 50 percent of low-income earners that inquire about ANZ’s lending programs
have products on their credit records. Due to this fact, most credit scoring structures lead to
automatic declines if there are items on a credit record regardless of the amount. These items