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ANZ, CBA CEOs promise more accountability in wake of royal commission findings


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According to Market Intelligence, April 2023

ANZ, CBA CEOs promise more accountability in wake of royal commission findings

Executives at Commonwealth Bank of Australia and Australia & New Zealand Banking Group Ltd. will carry greater accountability for misconduct after a number of bad behavior were uncovered by the royal commission.

In a parliamentary hearing held Oct. 11, CBA CEO Matt Comyn said executives across the group have faced consequences for the company's failures. "Some have been terminated, and there has been A$100 million impact on remuneration," he said.

The bank has also extended the government's banking executive accountability regime to more than 90 executives, which subjects them to tougher penalties for misconduct.

At ANZ, CEO Shayne Elliott said the bank is working to change the "limited and insufficient" links between specific failures and consequences, particularly those which have unfolded over time or occurred under a number of executives. He said those responsible may lose their job, their pay or their prospects within the company.

Elliott added that bank is improving its remediation process. The bank previously said it expects about A$374 million in customer refund charges and related remediation costs in the second half.

For CBA, Comyn said the bank has introduced stronger oversight of its mortgage brokers and strengthened its lending process with more inquiry into the customers' financial circumstances.

The remarks follow the release of the royal commission's interim report on an ongoing probe into the financial industry. The commission detailed several cases of misconduct at the major banks, including CBA's sale of credit card products to unqualified customers and ANZ's breach of lending laws when it offered overdraft facilities to customers.