The Australian Prudential Regulation Authority (APRA) has announced its intention 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.
The inquiry was announced by APRA chairman, Wayne Byres today and will be conducted by an independent panel appointed by APRA and will report within around six months.
Byres said the decision to initiate a prudential inquiry followed a number of issues which have raised concerns regarding the frameworks and practices in relation to the governance, culture and accountability within the CBA group, and have damaged the bank’s reputation and public standing. “The overarching goal of the prudential inquiry is to identify any core organisational and cultural drivers at the heart of these issues and to provide the community with confidence that any shortcomings identified are promptly and adequately addressed,” he said.
The Commonwealth Bank issued a measured response to the inquiry stating it acknowledged and supported the APRA announcement.
The Chairman of CBA, Catherine Livingstone AO, said: “CBA recognises that events over recent years have weakened the community’s trust in us. We have been working hard to strengthen trust, and will continue to do so. We welcome this opportunity for independent parties to review the work we have already undertaken and advise on what more we can do."
“APRA's oversight of this inquiry will ensure the independence and transparency needed to reassure all our stakeholders."