Commonwealth Bank to face independent inquiry from banking regulator APRA – Australia News

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August 28, 2017 11:53:31

The banking regulator has said it will establish an independent inquiry into the Commonwealth Bank.

Key points:

  • Independent panel appointed by APRA to investigate culture, governance and accountability at CBA
  • CBA will pay for the cost of the inquiry
  • Final report expected to take around six months and be made public

The Australian Prudential Regulation Authority (APRA) said the inquiry would focus on governance, culture and accountability frameworks and practices within Australia’s biggest bank.

The APRA inquiry follows Federal Court action by the financial intelligence agency AUSTRAC, which has accused CBA of breaching anti-money laundering regulations on nearly 54,000 occasions.

In addition, corporate regulator ASIC is investigating CBA to determine whether its directors met continuous disclosure obligations to its investors, while a potential shareholder class action against the bank has also been announced.

An independent panel will be appointed by APRA to investigate the bank’s practices, with CBA footing the bill for the inquiry.

APRA chairman Wayne Byres said the Commonwealth Bank was financially sound and well-capitalised but a series of scandals had dented public confidence in the institution.

“The overarching goal of the prudential inquiry is to identify any core organisational and cultural drivers at the heart of these issues and to provide the community with confidence that any shortcomings identified are promptly…

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