ANZ has allocated A$425 million for an on-market share buyback. The buyback of ordinary shares is scheduled for June.The bank said in a statement yesterday that the buyback would offset the value of ordinary shares issued this year under its dividend reinvestment plan and its bonus option plan.ANZ's chief financial officer, Shayne Elliott, said in a statement that the bank was comfortable with its capital position and had decided to neutralise the dilutive impact of the DRP and the BOP.The decision reflects the low rate of growth in banking. Banks are undertaking more capital management initiatives because there are fewer opportunities to use their capital for expansion or acquisition.It also reflects that fact that the capital accumulation phase of Basel III is over.ANZ last did a buyback in 2004, when it bought $350 million of shares.