In a statement, CBA chief executive Matt Comyn said in a statement that the prudential regulator had given its “endorsement” of the major bank’s Remedial Action Plan.
“We have submitted our plan to APRA and are pleased to have received APRA’s endorsement that it provides a reasonable basis for addressing the Inquiry’s recommendations,” Mr Comyn said.
On 2 May, APRA accepted an enforceable undertaking from the major bank, which said it would accept all 35 of APRA’s prudential inquiry recommendations.
According to the statement, the Remedial Action Plan is a “detailed program of change”, including:
- “Strengthening governance and oversight;
- Achieving better customer and risk outcomes;
- Building a more accountable, customer-focused, and transparent culture;
- Taking a proactive approach to risk; and
- Improving execution and delivering our plan.”
As part of the enforceable undertaking, CBA has appointed Promontory Financial Group as the independent reviewer, with “regular reviews of progress” to be scheduled with APRA.
Mr Comyn said the bank expects to “make good progress” in implementing the plan over the coming 12 months.
“We recognise that it will take time to demonstrate changes in capability and culture,” he said.
“CBA’s board and executives fully recognise we will not be judged by the plan or by completing milestones, but by sustainable improvements in customer and risk outcomes.”
The statement said senior executive remuneration would be cut by over $60 million.
Mr Comyn apologised to bank customers, shareholders and the Australian community after the results of APRA’s inquiry were released.
