Money-laundering scandal hurts all banks, says lobby chief Bligh

Bloomberg

The Commonwealth Bank of Australia money-laundering scandal has damaged public’s perception of the whole banking sector, according to the head of the industry’s lobby group.
“The issue that Australian banks are suffering with is community trust and public reputation,” Australian Bankers’ Association Chief Executive Officer Anna Bligh said in an interview. “The events of the past week, 10 days, have not only been very serious and damaging for the reputation of the Commonwealth Bank but for the banking industry in Australia as a whole,” she said.
The nation’s biggest lender has been engulfed by claims it breached anti-money laundering laws more than 50,000 times. On Monday, it said Chief Executive Officer Ian Narev will leave the bank within 10 months.
Australian banks, battered by scandals, have been attempting to head off opposition party calls for a wide-ranging inquiry into the sector, and fight back against the government’s decision to hit them with a $4.9 billionlevy.
“Australians do see the banking sector as an industry, and when something happens in one bank, it inevitably has some roll-on effect,” Bligh said. Her stance was echoed by Australia & New Zealand Banking Group Ltd. Chief Executive Officer Shayne Elliott.
“This is not something we can fix overnight,” Elliott said in an internal interview posted on ANZ’s website. While the industry is united in wanting to put the scandals behind it and is acting to address issues such as pay structures, “it’s going to take a number of years actually, that’s how trust is re-earned,” he said.