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Aug 28, 2017

Commonwealth ‘culture’ inquiry — right idea, wrong inquirer

The banking regulator has announced it will conduct an independent inquiry into the Commonwealth Bank's culture. It's a good idea -- but someone else should be doing it, Glenn Dyer and Bernard Keane write.

CBA money-laundering scandal

CBA CEO Ian Narev

The Australian Prudential Regulation Authority is to establish “an independent prudential inquiry into the Commonwealth Bank of Australia (CBA) focusing on governance, culture and accountability frameworks and practices within the group”, it announced this morning. A panel picked by APRA, working to a terms of reference yet to be finalised, is supposed to report within six months of commencing work. It will consider would "at a minimum ... whether the group’s organisational structure, governance, financial objectives, remuneration and accountability frameworks are conflicting with sound risk management and compliance outcomes". 

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3 comments

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3 thoughts on “Commonwealth ‘culture’ inquiry — right idea, wrong inquirer

  1. klewso

    At least with APRA taking another look at what they’ve missed, when they were supposed to be overseeing these sort of things, they’ll be able to downplay their own shortcomings – and verify Morrison’s commentary.
    As he says (to paraphrase) “Why have a royal commission that will take three years to grind the truth, shake the truth out and come to a conclusion : when we can ahve another go procrastinating yet again, come to some feel-good “findings” and then hunker down to wait for the cycle to repeat itself and screw more rubes over, so they can get back to those profits?”
    ….. I wonder how much these banks are “donating” to the Limited News Party for this sort of protection?

  2. Tabot Retemt

    I recall the Fitzgerald Inquiry into corruption in Queensland. Fitzgerald recommended that all police from sergeant and above be replaced. Of course it did not happen.
    Is the CBA in the same situation with every supervisor compromised or worse?

  3. AR

    Beyond a certain size, any organisation that is threatened cannot question its existence and when a problem becomes unignorable (usually due to external pressure) the chances of the upper echelon staff being held accountable are slim.
    If anything results from an enquiry, it is usually that the tea lady dunnit.

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