Time for banks to take responsibility for their acts

Banks now have to deal with the upheaval that will follow the Hayne royal commission report.

Ken Henry’s announced departure as NAB chairman (“NAB in turmoil as duo exit”, 8/2) should be a salutary lesson and an example to all board members: accept responsibility and act accordingly. All too often blame is shifted in order to survive. Unfortunately, his demise was largely self-inflicted due to arrogance displayed during a royal commission hearing. It is sad to see a most capable person leave in such humiliating circumstances. Hopefully, he will still be allowed to contribute his considerable talents and integrity in the future.

Michael Schilling, Millswood, SA

Some five years ago I approached NAB to borrow in order to purchase an investment property. I had been a customer for about 45 years and thought this would be a lay down misere. How wrong was I.

I had to produce evidence of everything, including income, assets and liabilities, contingencies and monthly commitments.

I was impressed that the bank was acting in a prudential manner and it reinforced my regard both as a customer and shareholder via my superannuation fund. Eventually the loan was made available.

I have had my issues with the bank, principally in relation to service (non-service) but I hold NAB in high esteem.

Gerald Moses, Clear Island Waters, Qld

The search for a new NAB chief executive following Andrew Thorburn’s resignation is a unique opportunity to radically change the way top bankers are remunerated. Instead of paying huge salaries and bonuses in the hope that the more you pay the better the outcome, I propose the new CEO’s salary be tied to 10 times the average full-time earnings in Australia including bonuses and overtime.

This could be rounded out to $1m to cover legitimate travel, entertainment and professional development expenses. Given the crucial role bankers play in generating and circulating wealth, as the average full-time earnings of Australians increase so would the CEO’s remuneration, an incentive to improve the performance of the bank rather than the pursuit of profit and market share that has produced more greed than the general public should have to stomach.

Worried no one will apply? What’s there to lose in trying? The opportunity to renew the once proud ethical traditions of bankers and banking could well appeal to someone ready to lead a major change in the way big corporations are run in this country.

John Halsey, Upper Sturt, SA

Well two have fallen on their swords (“Two down, rest lucky to keep their jobs, 8/2), an action that surely should be followed by all board members of the four major banks. Is there no concept of responsibility, have there been no ethics in bank boardrooms?

That those qualities have been found missing in such a significant sector of Australia’s economy, in the institutions that are a critical part of our governance, is a sorry commentary. And the stain spreads to the perception of the business community. One might ask what the directors were paid to do.

But the issue goes further than that and any of the legal proceedings that might follow, to the behaviour the public is entitled to expect, to demand.

Peter McNeill, Blackheath, NSW

It was amazing to see Ken Henry’s transformation from arrogance as royal commission respondent, to contrition (real or faux) on the ABC’s 7.30.

Were it not for the commission’s findings, he and Andrew Thorburn would be continuing on their merry, entitled way, comfortable in the view they had covered their briefs magnificently.

Good to see some accountability, if belated. Where pray, is the accountability from other bank hierarchies?

Claire Jolliffe, Buderim, Qld

The departures of Ken Henry and Andrew Thorburn will not materially change the institutionalised disgraceful attitude of NAB. Having been done over by it some 27 years ago, and hearing horror stories about similar heartlessness and bad practice from friends, it is clear the attitude problem is endemic in the organisation,

Allan Caton, Mount Eliza, Vic

It’s incongruous, given Henry and Thorburn were two of NAB’s top money men, that it should have taken so long for the penny to drop.

M.F. Horton, Adelaide, SA