Published: November 18, 2018
Commonwealth boss Matt Comyn also tells royal commission bank knew commissions encouraged brokers to write larger-than-necessary loans
The head of Australia’s biggest bank has acknowledged that his organisation wrongly sold credit card insurance to more than 60,000 unemployed customers and baulked at removing perverse incentives for mortgage brokers to sell larger loans.
Matt Comyn, the chief executive of Commonwealth Bank, also admitted that CBA has been waiting for the banking royal commission to make a recommendation that banks should stop paying volume-based commissions to mortgage brokers, even though CBA has known the practice encourages brokers to write larger-than-necessary loans, which puts customers at risk.
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