ANZ chair Key faces calls to resign

Former BNZ chairman Kerry McDonald is leading calls for Key to step down after ANZ New Zealand was punished by the Reserve Bank over capital modelling failings. 

Last month, the Reserve Bank revoked ANZ's license to model its own risk capital after the bank was found to have used an incorrect model since 2014. ANZ says it discovered the problem in April. Former prime minister Key joined the ANZ board in early 2018.

As part of its punishment, ANZ will need to increase risk capital by at least $277 million. But McDonald believes the punishment does not go far enough.

McDonald has written to the Reserve Bank Governor Adrian Orr calling for a tougher penalty against ANZ. He said he was "amazed" by the "slap on the wrist" given by the central bank.