RBA governor Philip Lowe says bank accountability starts at the top

RBA chief says bank accountability starts at the top, but leaves it others to “speculate on what that means”.

.NAB CEO Andrew Thorburn. Aaron Francis/The Australian

Reserve Bank of Australia governor Philip Lowe has called for leaders of Australia’s biggest banks to take personal responsibility for their organisations, declaring “cultural change really starts at the top”.

“Should the leaders take responsibility? Of course they should take responsibility. What that means, I will let others speculate,” Dr Lowe told an audience in Sydney.

“Cultural change really starts at the top in organisation. Leaders in organisations really need to be focused on delivering the right culture. It’s something that at the Reserve Bank we talk about. There has to be accountability and it starts at the top.”

The comments come as National Australia Bank chief executive Andrew Thorburn and chairman Ken Henry stare down pressure to resign, after Royal Commissioner Kenneth Hayne singled out the bank’s leadership over its potential inability to fix cultural issues.

NAB board members have been called back today for a second day of crisis meetings, while Mr Thorburn said on Tuesday he couldn’t guarantee he’ll be in the top job by Friday.

Mr Hayne’s final report said that NAB’s leaders had not accepted “necessary responsibility” for misconduct, including charging fees for no service, and said he feared there may be a gap between the public face of the bank and what it does in practice. Mr Thorburn and Mr Henry were both urged by the prime minister and the opposition leader to consider their positions after they were rounded on out by Commissioner Hayne.

When asked whether the duo should step aside if they couldn’t be expected to restore trust in the organisation, Dr Lowe said it was a matter for the bankers and the NAB board.

“I’m not going to comment on that. It’s a matter for the individuals and the board. I don’t think it’s going to help things by throwing my opinion into the mix,” Dr Lowe said.