Some Landmark agribusiness customers may have gone elsewhere if they had known earlier about ANZ's acquisition, the banking royal commission has heard.
The controversy over ANZ's acquisition of the Landmark Financial Services loan and deposit books from AWB in 2010 is back in the spotlight thanks to the royal commission.
A significant number of former Landmark customers felt they were treated unfairly by ANZ, the opening day of the commission's farming public hearing heard.
ANZ acknowledged it should have been more responsive and empathetic to some former Landmark customers facing hard times and that its failure to do so caused distress in some cases.
ANZ executive Ben Steinberg said the bank should have done a better job in the way it communicated with Landmark customers about the acquisition and their transition to the bank.
Mr Steinberg, the bank's head of lending services for corporate and commercial, said some customers felt ANZ did not have the same level of agribusiness experience as former Landmark staff.
"Some of the customers felt that had they been advised earlier, they may have made a decision to refinance their facilities from Landmark before the acquisition occurred," he told the inquiry.
Mr Steinberg will continue giving evidence on Tuesday, when he may be questioned about the bank's statements concerning seven specific cases involving former Landmark customers.
The cases cover four cattle farms in Queensland, a sheep farm in Western Australia, a mixed cropping farm in Victoria and a Tasmanian forestry business.
Queensland cattle farmers will also feature in further case studies this week involving Rabobank, Bankwest and National Australia Bank.
One cattle farmer is expected to give evidence after Mr Steinberg finishes his testimony on Tuesday.
Senior counsel assisting the commission Rowena Orr QC said the issues experienced by the three families exposed a number of difficulties faced by Queensland cattle farmers over the past decade.
She said some of the difficulties were triggered or exacerbated by external factors such as a decline in property and cattle prices, drought and cyclone-related flooding and the 2011 ban on the live export of cattle to Indonesia.
The inquiry will also examine loans made by Bendigo and Adelaide Bank subsidiary Rural Bank to Queensland cattle farmers.
Australian Associated Press
