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Review of the four major banks: CBA's Ian Narev

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The CBA hearing in ten dot points

Primrose Riordan

As we mentioned, that's it from today's grilling of CBA Cheif Ian Narev. Here's what went down:

  1. Narev urged government against regulating bank profits in good times, saying it could hit the economy in worse conditions.

  2. The CBA said they are open to both a change to make bank accounts more 'portable' via open data and a banking tribunal.

  3. Narev was pressed about a number of life insurance scandals that have hit the bank, including the instance of CommInsure refusing to pay out a claim for a woman who died of a prescription overdose because the bank decided she had taken her own life. This was despite the police and coroner ruling it an accidental overdose. He said in response: "that's a process that was not a customer friendly process."

  4. Narev said a review found 10 per cent of financial planning advice that the bank reviewed was found to be a problematic, forcing the bank into payouts worth $11 million.

  5. Narev responded to criticism about bank profitability, saying high profits maintain the confidence of the banks funders.

  6. The bank was accused of gauging customers of their 'low-rate' credit card by a Liberal MP.

  7. Narev has confirmed that former Liberal Party Chief Brian Loughnane is providing advice to CBA, under questioning from Labor.

  8. Narev admitted CBA's explanation of their failure to pass on full interest rate changes was not sufficient.

  9. CBA said some of their employees had been interviewed in relation to ASIC's bank bill swap rate investigation, but did not believe the interviews were related to specific charges.

  10. Narev has foreshadowed more payouts in relation to ongoing Comminsure scandals.

    Columnist Jennifer Hewett said it ended in a draw, and I'm sure there are more judgements to come...See you all tomorrow.

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    Original URL: https://www.afr.com/business/banking-and-finance/review-of-the-four-major-banks-cbas-ian-narev-20161003-grty36