ASB has agreed to pay $2.7 million to its rural customers in a settlement with the Financial Markets Authority.

The Commerce Commission investigated the bank last December for the sale of interest swaps and reached a separate settlement.

The FMA's settlement was reached on the Commission’s findings, as well ASB's processes for selling and marketing interest rate swaps to rural clients.

The bank's also agreed to an independent review into the interest rate swaps and term funds.

While ASB doesn't accept the Commission's findings, it admits it breached the Fair Trading Act in relation to some of its rural customers.

ASB will also pay $250,000 towards the Commission’s costs and another $250,000 to the Dairy Women’s Network.