National Australia Bank Ltd. is conducting an internal probe into its mortgage introducer program ahead of an inquiry by the financial services royal commission, The Australian reported March 6.
The bank's disciplinary review of its introducer program identified 2,300 home loans since 2013 that may have been submitted without accurate customer information. The program rewards businesses for lending referrals to the bank. The bank has fired 20 employees and disciplined 35 in relation to the review.
Australia's Finance Sector Union applied to represent members before the royal commission in relation to the program. The FSU said none of the sacked employees was from senior management and that the bank continued to focus on rogue employees instead of employment practices and the poor design of the program.
The royal commission will examine the conduct of Australian banks, insurers and other financial service companies. The government inquiry will not look into financial stability or the resilience of banks in the country. The hearings will begin March 13 and last until March 23.
