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Commonwealth Bank's Ian Narev undaunted by grilling over scandals Commonwealth Bank's Ian Narev undaunted by grilling over scandals
(35 minutes later)
The head of the Commonwealth Bank has emerged unfazed from three hours of questioning from a parliamentary committee.The head of the Commonwealth Bank has emerged unfazed from three hours of questioning from a parliamentary committee.
Ian Narev, CBA’s chief executive, was the first bank boss to appear at this week’s highly anticipated hearings, which were set up by the Turnbull government in response to pressure for a royal commission into the banking industry.Ian Narev, CBA’s chief executive, was the first bank boss to appear at this week’s highly anticipated hearings, which were set up by the Turnbull government in response to pressure for a royal commission into the banking industry.
Narev answered questions easily about controversial incidents at the bank. He appeared undaunted throughout.Narev answered questions easily about controversial incidents at the bank. He appeared undaunted throughout.
He only declined to answer one question, for reasons of commercial confidence.He only declined to answer one question, for reasons of commercial confidence.
He defended the CBA’s record profits, saying in the 25 years since CBA listed it had paid between 70% and 80% of its profits back to shareholders.He defended the CBA’s record profits, saying in the 25 years since CBA listed it had paid between 70% and 80% of its profits back to shareholders.
He admitted CBA had treated some CommInsure customers poorly, but said the bank had investigated the root causes of many controversial CommInsure claims, with the help of KPMG and Ernst & Young, and things were not as bad as they had been portrayed.He admitted CBA had treated some CommInsure customers poorly, but said the bank had investigated the root causes of many controversial CommInsure claims, with the help of KPMG and Ernst & Young, and things were not as bad as they had been portrayed.
“We have done wrong by some customers in that business, and other businesses,” he said.“We have done wrong by some customers in that business, and other businesses,” he said.
“Nothing I say today I would want to be interpreted as denying that in any way, shape or form, [but] the evidence that the independent reviews has surfaced is significantly at odds with many respects of how the issue has been characterised [in the media],” he said.“Nothing I say today I would want to be interpreted as denying that in any way, shape or form, [but] the evidence that the independent reviews has surfaced is significantly at odds with many respects of how the issue has been characterised [in the media],” he said.
In response to questions about the CBA’s financial planning scandal – where CBA customers lost their life savings – he said 8,000 people had wanted their financial advice reviewed and 6,000 reviews had been done.In response to questions about the CBA’s financial planning scandal – where CBA customers lost their life savings – he said 8,000 people had wanted their financial advice reviewed and 6,000 reviews had been done.
He said the process would be largely concluded by the end of the year.He said the process would be largely concluded by the end of the year.
He took multiple questions about interest rates, deposit accounts, bank account portability, and competition between the banks. He took multiple questions about interest rates, deposit accounts, bank account portability and competition between the banks.
He told the Liberal MP and chair of the committee David Coleman that the CBA was open to the idea of a “one-stop shop” banking tribunal, where customers could take a serious complaint and have it dealt with more easily.He told the Liberal MP and chair of the committee David Coleman that the CBA was open to the idea of a “one-stop shop” banking tribunal, where customers could take a serious complaint and have it dealt with more easily.
The 10 committee members were allotted 15-20 minutes each to ask questions of Narev, which left some members without time to finish their questions.The 10 committee members were allotted 15-20 minutes each to ask questions of Narev, which left some members without time to finish their questions.
The Greens MP Adam Bandt, on the phone from Melbourne, had to argue with Coleman to get 15mins rather than 10mins when time for the hearing had almost run out. The Greens MP Adam Bandt, on the phone from Melbourne, had to argue with Coleman to get 15 minutes rather than 10 minutes when time for the hearing had almost run out.
The Labor MP Matt Thistlethwaite emerged from the hearing to criticise the way it had been set up.The Labor MP Matt Thistlethwaite emerged from the hearing to criticise the way it had been set up.
“I thought it was … really interesting that the Liberal members of the committee, not one of them, asked a question on behalf of victims or whistleblowers today,” he said.“I thought it was … really interesting that the Liberal members of the committee, not one of them, asked a question on behalf of victims or whistleblowers today,” he said.
“It was up to the Labor party to ask, on behalf of those who’ve been wronged by the banks, about their actions about what they’re going to do to fix the situation.”“It was up to the Labor party to ask, on behalf of those who’ve been wronged by the banks, about their actions about what they’re going to do to fix the situation.”
Bandt said Narev had refused to reveal how much profit it makes on home mortgages, and failed to rule out asking for government assistance if faced with another global financial crisis.Bandt said Narev had refused to reveal how much profit it makes on home mortgages, and failed to rule out asking for government assistance if faced with another global financial crisis.
“After one day, it is clear a Royal Commission is the only way we will get the banks to come clean on how much profit they make off the back of home owners and public subsidies,” Bandt said. “After one day, it is clear a royal commission is the only way we will get the banks to come clean on how much profit they make off the back of homeowners and public subsidies,” Bandt said.
The head of ANZ will appear at the hearing on Wednesday, followed by the heads of NAB and Westpac on Thursday.The head of ANZ will appear at the hearing on Wednesday, followed by the heads of NAB and Westpac on Thursday.