Australia banks confess to misconduct at APRA hearing

Wednesday 23 May 2018 14:32 CET | News

During recent hearings at the Australian Prudential Regulation Authority, four banks have admitted involvement in fraudulent loans and double-charging interest.

Commonwealth Bank of Australia has admitted to systematically double-charging interest to some business customers over many years, according to Australian Prudential Regulation Authority officials, cited by Reuters. Moreover, the bank had failed to tell the regulator about the problem in a timely manner, which is required by law.

National Australia Bank has also admitted to overcharging customers due to incorrect calculations of interest rates and double-charging fees, while Westpac Banking Corp has admitted to offering loans to businesses that should not have been targeted, according to the same sources.

Less than halfway into a year-long investigation, the commission has already prompted the banks to impose stricter lending conditions on borrowers, triggering fears that the Australian economy will register subdued credit growth as a result.

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Keywords: Australian Prudential Regulation Authority, Australia, bank, Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corp, payments general
Countries: World

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