Following a run of incidents damaging public trust, the Australian banking regulator is set for an unprecedented public inquiry into the Commonwealth Bank of Australia.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry.
It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies, and most of the superannuation industry.
An Industry First
The inquiry comes after Commonwealth Bank of Australia (CBA) has in recent years been embroiled in scandals regarding substandard financial advice, wrongly denying some life insurance claims on the basis of of outdated medical definitions, and allegations of a mass breach of anti-money laundering laws.
It is the first time APRA has established a public inquiry of this type into one of the banks it supervises.
Trust Damaged
Responding to the latest round of the bank issued a statement on its website acknowledging and supporting the enquiry.
«CBA recognises that events over recent years have weakened the community’s trust in us. We have been working hard to strengthen trust, and will continue to do so,» said Catherine Livingstone chairman of CBA.
