ANZ has responded to a media report that it may not be able to continue paying fully franked dividends with a statement saying it expected "to pay fully franked dividends for the foreseeable future." The bank said it did not "pre-pay tax" in order to maintain its franking balance, as reported. It said it paid monthly company tax instalments in the normal course of business.ING Direct has joined the move by smaller mortgage lenders to increase their variable rates in the wake of rate increases announced by the big banks. The variable rate on all loans in its owner-occupier and residential mortgage portfolio will rise by 18 basis points on January 15. The rate on the Orange Advantage Offset Home Loan will rise to 5.02 per cent.