Commonwealth Bank’s breach of royal commission-era bonus caps has angered the chairman of the corporate regulator, who vowed to lift regulatory scrutiny on the country’s largest lender pointing to increased risk of banker misconduct.

The Australian Financial Review reported on Monday that CBA would lift the maximum bonus it can pay home loan bankers from 50 per cent of base pay – the limit imposed by a Stephen Sedgwick-led review for the Australian Banking Association in 2017 – to 80 per cent of base pay. The Hayne royal commission recommended in 2019 the cap be maintained for all frontline bank staff.