ANZ has compensated nine clients, who were defrauded or given misrepresentations by internal employees, to the tune of $2.6 million without reporting it to the corporate regulator, the bank's own submission to an inquiry says.

ANZ revealed the fraud in a series of answers to questions on notice requested by the joint parliamentary committee overseeing the inquiry into impairment of consumer loans.

ANZ did not file a breach report with ASIC despite dismissing an employee for fraud Credit:Bloomberg

The explosive response to questions on notice also shows that until March 2011, nearly one in four loans held by the bank were low doc loans.

The insight into fraud and misrepresentation within ANZ's home loan division comes amid a wave of scandals rocking the bank, including the alleged rigging to the bank bill swap rate and a Fair Work claim that shed light on the toxic culture within the bank's traders.