Scandal-plagued Westpac was set to be one of the two major banks to offer mortgages under the federal government's first home loan deposit scheme, but has since been axed in light of the money-laundering allegations it is currently facing.
Only National Australia Bank has been announced as one of the major banks for the scheme, which allows low and middle income earners to receive financing without a large deposit.
Meanwhile, Labor has called for Westpac to face a federal parliamentary economic committee in light of the allegations.