Commonwealth Bank

{{See also|Reserve Bank of Australia}}

The Commonwealth Bank of Australia was established by the Commonwealth Bank Act 1911, introduced by the Andrew Fisher Labor government, which favoured bank nationalisation, with effect on 22 December 1911.{{Cite web|url=https://www.rba.gov.au/about-rba/history/|title=Reserve Bank of Australia : A Brief History|website=rba.gov.au|access-date=5 December 2018}}{{Cite web|url=http://advance-australia.com.au/upfiles/the_story_of_the_commonwealth_bank.pdf|title=Story of Commonwealth Bank|access-date=5 December 2018|archive-date=1 March 2019|archive-url=https://web.archive.org/web/20190301131035/https://advance-australia.com.au/upfiles/the_story_of_the_commonwealth_bank.pdf|url-status=dead}} In a rare move for the time, the bank was to have both savings and general bank business. The bank was also the first bank in Australia to receive a federal government guarantee. The bank's earliest and most strenuous proponent was the flamboyant American-Australian Labor politician King O'Malley, and its first governor was Sir Denison Miller.

The bank opened its first branch in Melbourne on 15 July 1912.{{cite book|title=Australia Through Time|publisher=Random House Australia|year=2004|isbn=0-75931-002-5|page=191}} In an agreement with Australia Post that exists to this day, the bank also traded through post office agencies. In 1912, it took over the State Savings Bank of Tasmania, and by 1913 it had branches in all six states.

In 1916, the bank moved its head office to Sydney. It also followed the Australian army into New Guinea, where it opened a branch in Rabaul and agencies elsewhere.

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File:CBA Martin Place 001.jpg (1916-1960)]]

In 1920, the bank began acquiring central bank powers when it took over the responsibility for the issue of Australian bank notes from the Department of the Treasury.{{cite web|url=http://about.commbank.com.au/group_display/0,1922,CH2054,00.html |title=Commonwealth Bank – History – A brief history of the Commonwealth Bank |publisher=About.commbank.com.au |access-date=2012-07-14}} Also in 1920, the Commonwealth Bank took over the Queensland Government Savings Bank.

In 1924, the federal government of Stanley Bruce sought to place further checks and limits on the powers of the governor of the bank, and passed the Commonwealth Bank Act, 1924, which created a seven-member Board of Directors comprising the governor, the Secretary of the Treasury, and six directors "actively engaged in agriculture, commerce, finance or industry", and a Chairman of the Board elected annual from its members.{{cite web |title=Commonwealth Bank Act 1924 |url=https://www.legislation.gov.au/Details/C1924A00015 |website=Federal Register of Legislation |publisher=Australian Government |access-date=19 December 2022 |date=20 August 1924}} The first six board members were appointed on 10 October 1924: Sir John Garvan, Sir Robert Gibson, Sir Samuel Hordern, Robert McComas, Richard Samuel Drummond, and John McKenzie Lees.{{cite news |url=http://nla.gov.au/nla.news-article232474493 |title=Government Gazette Appointments and Employment |newspaper=Commonwealth of Australia Gazette |issue=75 |location=Australia, Australia |date=16 October 1924 |accessdate=19 December 2022 |page=1954 |via=National Library of Australia}}{{cite news |url=http://nla.gov.au/nla.news-article16169893 |title=COMMONWEALTH BANK. |newspaper=The Sydney Morning Herald |location=New South Wales, Australia |date=4 October 1924 |accessdate=19 December 2022 |page=16 |via=National Library of Australia}} Garvan was appointed as the first chairman on 13 October 1924.{{cite news |url=http://nla.gov.au/nla.news-article201426560 |title=Commonwealth Bank. |newspaper=The Evening News |issue=687 |location=Queensland, Australia |date=14 October 1924 |accessdate=19 December 2022 |page=5 |via=National Library of Australia}}

In 1931, the bank board came into conflict with the Labor government of James Scullin. The bank's chairman Sir Robert Gibson refused to expand credit in response to the Great Depression, as had been proposed by Treasurer Edward Theodore unless the government cut pensions, which Scullin refused to do. The conflict surrounding this issue led to the fall of the government, and to demands from Labor for reform of the bank and more direct government control over monetary policy.

Also in 1931, it took over the savings bank business of the Government Savings Bank of New South Wales (est. 1871), the current account and fixed deposit business of the NSW Rural Bank Department, and the State Savings Bank of Western Australia (est. 1863).

In 1942, the Commonwealth Banking Corporation (CBC) suspended its operations in Papua New Guinea as the Imperial Japanese Army captured many of the towns in which it operated, and bombed Port Moresby. The bank resumed operations later, possibly in 1944.

The bank had many branches across Papua New Guinea including Port Moresby, Boroko, Rabaul, Lae, Wau, Bulolo, Goroka, Kavieng, Madang, Mount Hagen, Kundiawa, Popondetta, and Wewak. On Bougainville, there was Kieta, Panguna, Arawa and early on a part-time sub-branch at Loloho. It maintained those facilities to support trade, local business, government, and small savers.

The Commonwealth Bank received almost all central bank powers in emergency legislation passed during World War II and at the end of the war, it used this power to begin a dramatic expansion of the economy. This was also the aim of the federal government at the time, which attempted to compel the Australian states to conduct their banking with the Commonwealth under the Banking Act 1945 (Cth), but the High Court in Melbourne Corporation v Commonwealth (1947) 74 CLR 31, blocked this move.

In August 1945, the federal government of Ben Chifley passed the Commonwealth Bank Act, 1945, which repealed the 1925 act and abolished the Board of Directors, returning full executive control of the bank to the governor.{{cite web |title=Commonwealth Bank Act 1945 |url=https://www.legislation.gov.au/Details/C1945A00013 |website=Federal Register of Legislation |date=3 August 1945 |publisher=Australian Government |access-date=19 December 2022}}

The government also dramatically expanded immigration programs. In response, the bank established a Migrant Information Service (later known as the Australian Financial & Migrant Information Service, or AFMIS). The bank expanded during this period, and in just five years it opened hundreds of branches throughout Australia and in 1951 it established a branch in the Solomon Islands.

In 1958 and 1959, there was a controversy concerning the dual functions of the organization, operating as the central bank on the one hand and a commercial bank on the other. As a result, the government separated the two roles, creating the Reserve Bank of Australia to exercise the central bank function, and leaving the Commonwealth Banking Corporation to operate purely as a commercial bank. Those commercial functions were exercised by the organization's constituent sections: the Commonwealth Trading Bank of Australia, the Commonwealth Savings Bank of Australia, and the newly formed Commonwealth Development Bank.

From 1958 to 1976 the Commonwealth Bank operated savings bank agencies in the New Hebrides.

File:Commonwealth Bank old logo.jpg

A new Commonwealth Development Bank was established in 1960 and during the 1970s the bank diversified its business into areas like insurance and travel. It established a finance company, CBFC in 1974. The bank also became more heavily involved in foreign currency trading and international banking in general.

The bank actively supported the introduction of decimal currency in the years leading up to 1966 and, like most banks, it gradually converted its paper records onto a new computer-based system. The bank created the first credit card in Australia in 1974 when it established Bankcard. In later years the bank began offering MasterCard (1984) and Visa (1993) cards as well.

In 1974, as Papua New Guinea approached independence, the bank formally handed over its PNG operations to the newly created and government-owned Papua New Guinea Banking Corporation (PNGBC). The bank retained a restricted branch in Port Moresby that it finally closed in 1982.

In 1981 the bank transferred its operations in the Solomon Islands to the National Bank of Solomon Islands, which operated as a joint venture (51% Commonwealth Bank, 49% Government of the Solomon Islands).

In 1989 the bank acquired 75 per cent of ASB Bank in New Zealand.

In 1991 the bank acquired the failing Victorian Government-owned State Bank of Victoria (est. 1842).{{Cite web|last=Dixon|first=Robyn|author-link=Robyn Dixon (journalist)|date=2019-08-23|title=From the Archives, 1990: Victoria sells debt-laden State Bank|url=https://www.theage.com.au/national/victoria/from-the-archives-1990-victoria-sells-debt-laden-state-bank-20190819-p52iml.html|access-date=2021-08-11|website=The Age|language=en}}

File:Commonwealth Bank.svg

File:(1)Commonwealth Bank Sydney.jpg; the Commonwealth Bank's headquarters from 1990-2009{{Cite web|last=John|first=Danny|title=Commonwealth Bank head offices through the years|url=https://www.commbank.com.au/articles/newsroom/|website=Commonwealth Bank - Newsroom}}]]

Between 1991 and 1996 the Australian Government under the Keating government fully privatised the Commonwealth Bank. The first share offer in 1991 was valued at $1,292 million, the second in 1993 for $1,700 million and the third was sold for $5,000 million in 1996.{{Cite web |url=http://unpan1.un.org/intradoc/groups/public/documents/eropa/unpan001420.pdf |title=Archived copy |access-date=2 November 2013 |archive-date=9 September 2016 |archive-url=https://web.archive.org/web/20160909213215/http://unpan1.un.org/intradoc/groups/public/documents/EROPA/UNPAN001420.pdf |url-status=dead }} It is a public company, but one of the few such companies in Australia whose official name does not end in 'Limited'.

In 1994 Commonwealth sold its shares in National Bank of Solomon Islands to Bank of Hawaii. In 1994, Commonwealth took a 50% share in PT Bank International Indonesia.

On 10 March 2000, the Commonwealth Bank and Colonial Limited announced their intention to merge, with seven Commonwealth Bank shares being offered for twenty Colonial Shares. The merger received final approval from the Supreme Court of Victoria on 31 May 2000 and was completed on 13 June 2000. This brought into the fold Colonial’s stake in Colonial National Bank, the former National Bank of Fiji. The bank also acquired the remaining 25% of ASB Bank.

Asian banking opportunities in 2000, saw the bank acquire full ownership of PT Bank International Indonesia and rename it (PT Bank Commonwealth). This bank now has over 16 branches and has opened several FX shops to cater to Commonwealth Bank clients who are tourists in Bali.

In 2005, the bank established strategic co-operation agreements with two Chinese banks, Jinan City Commercial Bank and Hangzhou City Commercial Bank; it took an 11% stake in Jinan Commercial, and a 19.9% stake in Hangzhou Commercial. Commonwealth also established a representative office in Bangalore, India.

On 27 January 2006, the bank acquired the remaining 49% stake in Colonial National Bank (Fiji).

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At the beginning of 2008, Commonwealth Bank opened a branch in Ho Chi Minh City (Saigon). Then in October, Commonwealth announced that it had purchased Bankwest and St Andrew's Insurances from their parent company HBOS for A$2.1 billion.{{cite web|url=http://www.commbank.com.au/about-us/news/media-releases/2008/081008-news-bankwest-acquisition.aspx|title=Commonwealth Bank of Australia to acquire Bank West and St Andrew's|author=Commonwealth Bank|year=2008|access-date=2008-10-09|archive-url=https://web.archive.org/web/20081012083229/http://www.commbank.com.au/about-us/news/media-releases/2008/081008-news-bankwest-acquisition.aspx|archive-date=12 October 2008|url-status=dead}}{{cite web|url=https://www.bankwest.com.au/about-us/our-journey|title=BankWest and St Andrew's sold to Commonwealth Bank|author=Bank of Western Australia Limited|year=2020|access-date=2020-10-27}} The acquisition was scheduled to be completed in early 2009, subject to regulatory approval. Lastly, on 24 December, Commonwealth announced that it had, in joint partnership with Aussie Home Loans, purchased Wizard Home Loans.{{Cite web|url=http://www.news.com.au/business/story/0,27753,24840570-462,00.html|archive-url=https://web.archive.org/web/20081224164234/http://www.news.com.au/business/story/0%2C27753%2C24840570-462%2C00.html|url-status=dead|title=Aussie Home Loans and Commonwealth Bank to buy Wizard Home Loans|archive-date=24 December 2008}} As part of the deal, the Commonwealth Bank will acquire Wizard mortgages up to the value of A$4 billion. Commonwealth Bank held about 30 percent of the loan business of financial advisory company Storm Financial when it collapsed in January 2009.{{cite news|url=http://news.theage.com.au/breaking-news-business/storm-financial-collapse-plan-outlined-20090810-ef9y.html|title=Storm Financial collapse plan outlined|last=Osborne|first=Paul|date=10 August 2009|work=The Age (Melbourne)|access-date=15 January 2010}}

In December 2009, Commonwealth sold Colonial National Bank to Bank of South Pacific.

The bank transferred its ATM service desk from HP Enterprise Services in Adelaide to ITS (Armaguard) in Sydney in March 2012. The bank will change from NCR and Diebold ATMs to Wincor Nixdorf ATMs over the coming years.

The bank is the only financial services organisation to appear in the Dream Employers' top 20 list of preferred employers for 2010 and 2011.{{cite web|url=http://www.dreamemployers.com.au/dreamemployerawards/|title=The Dream Employers|access-date=2013-02-16|year=2011|publisher=Dream Employers|archive-date=9 April 2013|archive-url=https://web.archive.org/web/20130409122902/http://www.dreamemployers.com.au/dreamemployerawards/|url-status=dead}}

During the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry it was discovered that the Commonwealth Bank had charged dead people for financial advice services.{{cite news|title=Commonwealth Bank defends 'good decision' not to tell customers about data breach|url=http://www.abc.net.au/news/2018-05-02/commonwealth-bank-confirms-loss-financial-records-20m-customers/9720928|access-date=3 May 2018|work=ABC News|date=2 May 2018|language=en-AU}} On 9 May 2018, Commonwealth Bank settled an interest rate rigging case brought by ASIC for $25 million. In the settlement, the bank admitted it engaged in "unconscionable conduct" and manipulated the bank bill swap rate five times between February and June 2012.{{Cite news|url=http://www.abc.net.au/news/2018-05-09/cba-and-asic-to-settle-rate-rigging-case/9742152|title=Commonwealth Bank and ASIC to settle interest rate-rigging case|date=9 May 2018|work=ABC News|access-date=9 May 2018|language=en-AU}}

On 16 November 2023, the bank announced divestment of PT Bank Commonwealth to Bank OCBC NISP.{{cite web | url=https://www.commbank.com.au/articles/newsroom/2023/11/pt-bank-commonwealth.html | title=Divestment of PT Bank Commonwealth }}

Commonwealth Bank is one of the major Australian banks known to be financing and profiting from activities destructive to the Great Barrier Reef, something the bank has been facing increased public scrutiny over since a 2013 report by Market Forces;{{cite web|title=Financing Reef Destruction; How banks are using our money to destroy a national icon|url=http://www.marketforces.org.au/wp-content/uploads/2013/10/MF_Financing_Reef_Destruction.pdf|website=Market Forces|access-date=10 May 2015|archive-url=https://web.archive.org/web/20140308100154/http://www.marketforces.org.au/wp-content/uploads/2013/10/MF_Financing_Reef_Destruction.pdf|archive-date=8 March 2014|url-status=live}} the Sydney Morning Herald stated:{{cite news|last1=Hannam|first1=Peter|title=Big banks finance reef destruction, activists claim|url=http://www.smh.com.au/business/carbon-economy/big-banks-finance-reef-destruction-activists-claim-20130501-2iu3x.html|access-date=10 May 2015|work=Sydney Morning Herald|date=2 May 2013}}

{{block quote|Australia's big four banks are leading lenders to the massive expansion in coal and gas shipments through the Great Barrier Reef, contradicting their own pledges to curb carbon emissions and preserve sensitive environmental areas. ... The CBA, meanwhile, highlighted its achievement to cut carbon emissions from operations by 35,000 tonnes in 2012. A single bulk carrier shipment of coal exported from Australia would result in final emissions of four times those savings.|Julien Vincent, campaigner with Market Forces, May 2013.}}

In 2014, CBA and the big four Australian banks faced increased pressure to end their support for reef-threatening mining projects, as surveys have shown that "the big four banks would be risking customers shifting up to $236 billion in household deposits if they were to finance a project like the Abbot Point expansion".{{cite news|last1=Saunders|first1=Amanda|title=Australian banks face more pressure over support for coal projects|url=http://www.smh.com.au/business/mining-and-resources/australian-banks-face-more-pressure-over-support-for-coal-projects-20140710-zt14p.html|access-date=10 May 2015|work=Sydney Morning Herald|date=10 July 2014}}

In late 2014, it "was revealed [CBA] was advising Indian coal miner Adani on its proposed development in Queensland's Galilee basin",{{cite news|last1=Chatterjee|first1=Dev|title=It's Branson vs Adani in Australia; Virgin promoter to protest Adani's mining project in Australia, saying it will damage the Great Barrier Reef|url=http://www.businessspectator.com.au/news/2014/11/27/policy-politics/cba-gun-galilee-coal-mine-advisory-role|access-date=10 May 2015|work=Business Standard|date=9 May 2015}} while by 2015, it has been reported that "all the major American and European banks have refused funds to the project, citing environmental damage".{{cite news|title=CBA in gun for Galilee coal mine advisory role|url=http://www.business-standard.com/article/companies/it-s-branson-vs-adani-in-australia-115050800809_1.html|access-date=10 May 2015|work=Business Spectator|date=27 November 2015}}

In May 2015, a report by Market Forces showed that CBA is the single biggest lender to fossil fuel projects within the Great Barrier Reef World Heritage Area during the six-year period from 2008 to 2014.{{cite news|last1=van de Pol|first1=Will|title=Commbank biggest lender to coal and gas in the Reef|url=http://www.marketforces.org.au/Commbank-biggest-lender-to-coal-and-gas-in-the-Reef|access-date=16 May 2015|publisher=Market Forces|date=16 May 2015|archive-url=https://web.archive.org/web/20150521052001/http://www.marketforces.org.au/Commbank-biggest-lender-to-coal-and-gas-in-the-Reef|archive-date=21 May 2015|url-status=dead}} Almost immediately following, protests were held at over fifty CBA branches in Australia and around the world.{{cite news|last1=Milman|first1=Oliver|title=Australia's banks have 10% loans in risky fossil fuels, says investment adviser|url=https://www.theguardian.com/business/2015/may/20/australias-banks-have-10-loans-in-risky-fossil-fuels-says-investment-adviser|access-date=20 May 2015|work=The Guardian|date=20 May 2015}}{{cite news|last1=Ong|first1=Thuy|title=Environment campaigners protest in central Sydney over Commonwealth Bank investment in fossil fuel projects|url=http://www.abc.net.au/news/2015-05-20/group-against-commbank-fossil-fuel-investment-protest-in-sydney/6484328|access-date=20 May 2015|agency=Australian Broadcasting Corporation|date=20 May 2015}} Billboards, hoardings and branch signs were revised to read "Coal Bank" and company slogans changed to highlight its investment in fossil fuels.{{Cite web |last=McIntyre |first=Iain |date=2022-03-23 |title=Australian Actions at the Point of Assumption |url=https://commonslibrary.org/australian-actions-at-the-point-of-assumption/ |access-date=2022-11-10 |website=The Commons Social Change Library |language=en-AU}}

Later in May, a report by MSCI showed that while other banks are reducing their funding for fossil fuel projects, Australia's largest banks are ramping up this same funding; The Guardian reported:

{{block quote|Australia's largest banks have committed about 10% of their known loan arrangements to the financing of risky fossil fuel projects that may become 'stranded' if the world is to avoid disastrous climate change, new research has estimated.|The Guardian, May 2015.}}

In October 2008, former CBA financial planner [http://www.abc.net.au/news/2018-06-29/jeff-morris.jpg/9921310 Jeff Morris] alleged to the Australian Securities and Investments Commission (ASIC) and subsequently a Senate Inquiry, the extent of the misconduct of CBA's financial planning arm, Commonwealth Financial Planning Limited (CFPL), but it was not until 16 months later that ASIC would launch an investigation.{{cite news|work=Australian Financial Review|title=The man who blew the whistle on CBA|url=http://www.afr.com/p/business/financial_services/the_man_who_blew_the_whistle_on_gXRai1FAdK3vNJAKv22z0N|access-date=15 July 2014|date=28 June 2014|first1=Clancy|last1=Yeates|first2=James|last2=Eyers|url-status=dead|archive-url=https://web.archive.org/web/20140701095502/http://www.afr.com/p/business/financial_services/the_man_who_blew_the_whistle_on_gXRai1FAdK3vNJAKv22z0N|archive-date=1 July 2014}} "There was forgery and dishonest concealment of material facts," the Senate Inquiry found in its report.{{cite book|title=Performance of the Australian Securities and Investments Commission|url=http://www.aph.gov.au/parliamentary_business/committees/senate/economics/asic/final_report/~/media/committees/senate/committee/economics_ctte/asic/final_report/report.pdf|date=26 June 2014|publisher=Parliament of Australia|archive-url=https://web.archive.org/web/20140630093718/http://www.aph.gov.au/parliamentary_business/committees/senate/economics/asic/final_report/~/media/committees/senate/committee/economics_ctte/asic/final_report/report.pdf|archive-date=30 June 2014|url-status=live|access-date=15 July 2014}} They concluded a Royal Commission or Judicial Inquiry as it was deemed ASIC lacked the investigative powers required to uncover the full extent of the allegations.{{cite news|title=Senators demand inquiry into CBA|url=http://www.smh.com.au/business/senators-demand-inquiry-into-cba-20140626-3awgo.html|access-date=15 July 2014|work=The Sydney Morning Herald|date=27 June 2014|first1=Adele|last1=Ferguson|first2=Ben|last2=Butler|authorlink1=Adele Ferguson}} A week following the Senate Inquiry, CEO Ian Narev publicly apologised while announcing a compensation scheme.{{cite news|work=The Sydney Morning Herald|title=CBA sorry 'too little, too late'|url=http://www.smh.com.au/business/banking-and-finance/cba-sorry-too-little-too-late-20140703-3bbhy.html|date=4 July 2014|first1=Adele|last1=Ferguson|authorlink1=Adele Ferguson|first2=Ben|last2=Butler|access-date=15 July 2014}} Former CEO Ralph Norris also conceded that he was aware of problems within CFPL acknowledging the presence of rogue financial planners but rejected the assertion of a conspiracy to cover it up.{{cite news|title=Former CBA boss Norris blames scandal on 'rogues'|url=http://www.smh.com.au/business/former-cba-boss-norris-blames-scandal-on-rogues-20140713-3bv1g.html|first1=Jamie|last1=Freed|first2=James|last2=Eyers|access-date=15 July 2014|work=The Sydney Morning Herald|date=14 July 2014}} CBA has been criticised in the Senate for appointing Dr. Brendan French, who was the General Manager of Group Customer Relations before, as the head of the Open Advice Review program.{{Citation|title = Commbank CBA Brendal French - all mentions at Senate Inquiry|url = https://www.youtube.com/watch?v=kMNsQend2-Y|date = 2014-06-04|access-date = 2016-01-21|last = The Real Dr Brendan French}}{{Cite news|title = CBA executive running compensation scheme moves to new role|url = http://www.smh.com.au/business/banking-and-finance/cba-executive-running-compensation-scheme-moves-to-new-role-20151127-gl9l1w.html|work = The Sydney Morning Herald|first = Clancy|last = Yeates|date = 27 November 2015|access-date = 2016-01-21}} The CBA defended Dr. Brendan French successfully in a defamation lawsuit in 2015;{{Cite news|work=Australian Financial Review|title=CBA executive awarded $300,000 after 'hellish' bullying|first=Marianna|last=Papadakis|url=https://www.afr.com/companies/professional-services/cba-executive-awarded-300000-after-hellish-bullying-20151207-glhm8f|date=2015-12-07|access-date=2021-07-23}} the decision was a single judge decision and was not appealed after the defence was withdrawn.{{Cite web|date=2021-07-21|title=The Tragic Story of Brendan French|url=https://classlessactions.com/2021/07/21/what-levitt-robinson-did-to-brendan-french/|access-date=2021-07-23|website=Levitt Robinson Classless Actions|url-status=usurped|archive-date=July 23, 2021|archive-url=https://web.archive.org/web/20210723030306/https://classlessactions.com/2021/07/21/what-levitt-robinson-did-to-brendan-french/}} Criticism has also been leveled at the fact that Dr. Brendan French was formerly a member of the board of directors of the Financial Ombudsman Service and is now working in CBA with respect to customer complaints.{{Cite web|url=http://fsi.gov.au/files/2014/08/name_withheld.pdf|last=Financial System Inquiry|title=Extension of unfair contract term protections to small business -submission|url-status=dead|archive-url=https://web.archive.org/web/20160126232837/http://fsi.gov.au/files/2014/08/name_withheld.pdf|archive-date=26 January 2016|date=6 June 2014|access-date=21 January 2016}}

In 2016, it was revealed that some CBA staff were implicated in an alleged $76m Ponzi scheme fraud.{{Cite web|title = Commonwealth Bank staff implicated in alleged $76m fraud|url = http://www.smh.com.au/business/banking-and-finance/commonwealth-bank-staff-implicated-in-alleged-76m-fraud-20160204-gmllia.html|website = The Sydney Morning Herald|date = 4 February 2016|access-date = 2016-02-13}} The alleged architects of the scam were professional poker player Bill Jordanou and accountant Robert Zaia.

It was reported alleged systemic issues about the insurance division of CBA. A claimant who suffered a heart attack and nearly died had his claim declined based on an outdated medical definition in his insurance policy.{{Cite news|date=2016-03-04|title=CommInsure denying heart attack claims due to outdated definition|url=https://www.abc.net.au/news/2016-03-05/comminsure-denying-heart-attack-claims/7218818|access-date=2020-06-11|newspaper=ABC News|language=en-AU}} The company admitted this decision was a bad judgement.{{Cite web|date=2017-03-03|title=CBA's CommInsure admits to 'poor judgement' over medical definition updates|url=https://www.afr.com/companies/financial-services/cbas-comminsure-admits-to-poor-judgement-over-medical-definition-updates-20170303-gupzqh|access-date=2020-06-11|website=Australian Financial Review|language=en}} The insurer also "refused to pay total permanent disability (TPD) and terminal illness claims on the chance that a dying person facing organ failure may have their life saved by a transplant, and that a person can claim their life insurance if they are declared terminally ill by two doctors and deemed likely to die within 12 months."{{Cite web|url = http://www.smh.com.au/interactive/2016/comminsure-exposed/heart-attack/|title = You can't trust CommInsure - Part 1|last = Ferguson|first = Adele|website = www.smh.com.au|access-date = 2016-03-05}} In March 2016, ASIC announced it would be investigating CBA about the allegations.{{Cite web|url=http://www.afr.com/business/asic-to-investigate-cbas-life-insurance-arm-20160305-gnbmox|title=ASIC to investigate CBA's life insurance arm|website=Financial Review|date=6 March 2016|language=en-US|access-date=2016-03-06}} After the serious allegations were aired in an episode of Four Corners two parliamentary inquiries were conducted.{{Citation|title=Money for Nothing|date=2016-03-07|url=https://www.abc.net.au/4corners/money-for-nothing-promo/7217116|publisher=Australian Broadcasting Corporation|language=en-AU|access-date=2020-06-11}} One into the life insurance sector,{{Cite web|title=Inquiry into the life insurance industry|url=https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/LifeInsurance|access-date=2020-06-11|website=Parliament of Australia|language=en-AU}} and another into protection of whistleblowers.{{Cite web|title=Whistleblower protections in the corporate, public and not-for-profit sectors|url=https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/WhistleblowerProtections|access-date=2020-06-11|website=Parliament of Australia|language=en-AU}} The inquiries found that no staff involved in the wrongdoings were fired. The only person who suffered a consequence was the whistleblower who had tried to do the right thing.{{Cite web|last=McConnell|first=Pat|title=Dr Benjamin Koh – Australian of the Year 2017?|url=http://theconversation.com/dr-benjamin-koh-australian-of-the-year-2017-56012|access-date=2020-06-11|website=The Conversation|date=9 March 2016 |language=en}} There were also calls for a Royal Commission into the insurance industry.{{Cite news|url=http://www.abc.net.au/news/2016-03-08/comminsure-scandal-cause-for-royal-commission-labor-says/7228136|title=Calls for Royal commission into 'disgraceful' CommInsure|website=ABC News|date=7 March 2016|language=en-AU|access-date=2016-03-07}} The Financial Services Royal Commission was eventually called and found widespread issues. The Commonwealth Bank was called the gold medallist for ripping off customers by the counsel assisting the royal commissioner.{{Cite web|date=2018-04-18|title=CBA 'gold medallist' of big five for charging fees for no service|url=https://www.afr.com/opinion/cba-the-gold-medallist-of-the-big-five-for-charging-fees-for-no-service-20180418-h0yxvj|access-date=2020-06-11|website=Australian Financial Review|language=en}}

In August 2017, the financial intelligence agency Australian Transaction Reports and Analysis Centre (AUSTRAC) launched civil proceedings in the Federal Court of Australia, alleging that CBA had breached money laundering and terrorism financing laws on 53,700 occasions. The breaches related to the bank's use of intelligent deposit machines (IDMs) between November 2012 and September 2015—the bank claimed that a programming error allowed depositors to instantly credit cash deposits to their accounts, whilst failing to report amounts over $10,000 to AUSTRAC, and not enforcing any limits to the number of transactions.{{cite news|title=CBA accused of money laundering, terrorism financing breaches |url=http://www.abc.net.au/news/2017-08-03/cba-risks-massive-fines-over-law-breaches/8770992|access-date=14 August 2017|work=ABC News|date=3 August 2017|language=en-AU}}

{{See also|Libor scandal|Interbank lending market}}

ASIC commenced legal proceedings in the Federal Court on 30 January 2018 alleging manipulation of the bank bill swap rate (BBSW). The BBSW rate is the rate of interest that banks charge to lend money to each other, and is a key interest rate used as the benchmark for interest rates on a number of products, most notably business loans, currency derivatives and floating rate bonds. It is alleged that the manipulations took place on three specific occasions in 2012.{{cite news|title=ASIC sues Commonwealth Bank for interest rate fixing on eve of royal commission |url=https://thenewdaily.com.au/money/finance-news/2018/01/30/commonwealth-bank-bbsw-asic/ |access-date=31 January 2018 |work=The Newdaily|date=31 January 2018 |language=en-AU}}

The change from Basel I to Basel II capitalisation requirements, due to take effect on 1 January 2009, required [https://www.bankwest.com.au/ BankWest] to increase its Tier 1 capital (share capital) by an additional A$17 billion. BankWest's owner HBOS lent this money to Bankwest, but required the money be repaid to meet HBOS's own capital requirements.{{Cite web|url=https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=COMMITTEES;id=committees/commjnt/44a392b3-aad7-41f3-86c1-d72a6045ce4a/0001;query=Id:%22committees/commjnt/44a392b3-aad7-41f3-86c1-d72a6045ce4a/0000%22|title=ParlInfo - Parliamentary Joint Committee on Corporations and Financial Services : 02/12/2015 : Impairment of customer loans|publisher=Parliament of Australia|last=Joint Committee on Corporations and Financial Services}}

HBOS, therefore, agreed to sell BankWest to Commonwealth Bank (CBA) in October 2008. The sale completed on for A$2.1 billion on 19 December 2008, and required Commonwealth Bank to repay the capital HBOS had loaned Bankwest.

One of the provisions of the sale agreement was an ability for CBA to claim a price adjustment. A loan was later found to have been impaired at the time of purchase but had not been identified to Commonwealth Bank by HBOS as impaired during the acquisition.

Commonwealth Bank declared 1,958 out of 26,000 BankWest commercial loans impaired (in default of the loan terms), with a total face value of $17.9 billion. As they were deemed to be in breach of their loan conditions, the bank was able to charge increased interest rates, or require early repayment.

Commonwealth Bank lost A$2 billion on defaulted loans that were not repaid (2.1% of the loan book, in comparison to an average of 0.4% across the Big Four Australian banks). Of the defaulted loans, the calling-in of 117 resulted in the borrowing company going into receivership.

Borrowers complained that they had complied with the monetary conditions of the loans: they had kept up interest payments and repayments, and disputed whether it was reasonable to apply penalty interest and require early repayment for non-monetary issues (for example, not having invested the funds for the purpose borrowed, or no longer having adequate security to back the loan).

The Australian Parliament requested that the Parliament's Joint Committee on Corporations and Financial Services conduct an inquiry into the matter,{{Cite web|url=https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/customer_loans|title=The impairment of customer loans|last=Joint Committee on Corporations and Financial Services|publisher=Parliament of Australia}} which reported on 4 May 2016.

The committee concluded that there was no evidence to suggest that impairment of loans was related to an attempt to 'claw back' any of the BankWest purchase price.{{Cite web|url=https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/customer_loans/Report/b01|title=Executive summary|last=Joint Committee on Corporations and Financial Services|publisher=Parliament of Australia}} However, it did find that "in a minority of cases" there was abuse of the asymmetry of power between the bank and the borrower. The committee recommended that there be improvements in the consistency of lenders' valuation of property used as security for loans.

Dollarmites was the Commonwealth Bank's school banking program. In a 2020 Report, the Australian Securities and Investments Commission (ASIC) recommended against these programs.{{cite web |title=Review of school banking programs |url=https://asic.gov.au/media/5893493/rep676-published-15-december-2020.pdf |website=ASIC Australia |publisher=Australian Securities and Investments Commission |access-date=29 April 2021 |archive-url=https://web.archive.org/web/20210429025934/https://asic.gov.au/media/5893493/rep676-published-15-december-2020.pdf |archive-date=29 April 2021 |date=15 December 2020 |quote=Young children are vulnerable consumers and are exposed to sophisticated advertising and marketing tactics by school banking program providers.}}

The Victorian Government{{cite web |title=Victorian Government bans financial institutions running school banking programs like Dollarmites |url=https://www.abc.net.au/news/2020-11-29/victoria-bans-banks-running-school-programs-like-dollarmites/12932290 |website=ABC News |publisher=Australian Broadcasting Corporation |access-date=29 April 2021 |date=29 November 2020}} and later the Queensland Government{{cite web |last1=McKenna |first1=Kate |title=Commonwealth Bank Dollarmites program ditched from Queensland schools after review |url=https://www.abc.net.au/news/2021-04-26/queensland-school-banking-commonwealth-dollarmites-ditched/100095502 |website=ABC News |publisher=Australia |access-date=29 April 2021 |date=27 April 2021}} planned to stop allowing these programs in their state schools. Consumer group Choice continued to lobby for more State governments to also ban the banking program from public schools.{{cite web |last1=Cornish |first1=Chris |title=Why are bureaucrats against teaching children to save? |url=https://spectator.com.au/2021/05/why-are-bureaucrats-against-teaching-children-to-save/ |website=Spectator Australia |publisher=Spectator |access-date=2 June 2021 |date=20 May 2021}}

Finally in 2021, after the New South Wales Government banned it too, the Commonwealth Bank announced the end of the program.{{cite web |author1=David Adams |title=The Dollarmites are officially dead, the Commonwealth Bank has confirmed, as states turn on the school banking program |url=https://www.businessinsider.com.au/dollarmites-school-program-ends-commonwealth-bank |website=Business Insider Australia |access-date=21 November 2021 |archive-url=https://web.archive.org/web/20211027113602/https://www.businessinsider.com.au/dollarmites-school-program-ends-commonwealth-bank |archive-date=27 October 2021 |date=27 October 2021}}{{cite web |author1=Jarni Blakkarly |title=Commonwealth Bank drops Dollarmites |url=https://www.choice.com.au/money/banking/everyday-banking/articles/commonwealth-bank-drops-dollarmites |website=Choice |publisher=Choice Australia |access-date=21 November 2021 |archive-url=https://web.archive.org/web/20211026114825/https://www.choice.com.au/money/banking/everyday-banking/articles/commonwealth-bank-drops-dollarmites |archive-date=26 October 2021 |date=25 October 2021}}

A subset of Commonwealth Bank staff were found to be fraudulently use the bank’s money, loose change, or their own money to illegitimately activate Youthsaver accounts for financial gain. According to The Sydney Morning Herald, "They would do so when parents had signed up their kids for school banking, often referred to as Dollarmites, but had not deposited money into the account within 30 days. If no deposit had been made, the sign-up would not count towards sales targets and financial rewards."{{Cite web |last=Ferguson |first=Adele |date=2018-05-18 |title=Dollarmites bites: the scandal behind the Commonwealth Bank's junior savings program |url=https://www.smh.com.au/business/banking-and-finance/dollarmites-bites-the-scandal-behind-the-commonwealth-bank-s-junior-savings-program-20180517-p4zfyr.html |access-date=2024-07-09 |website=The Sydney Morning Herald |language=en}}

Commonwealth Bank has moved through many different offices, starting off in Melbourne (Collins Street), then moving to Martin Place in Sydney's CBD. In 2009, CBA moved into Darling Park Tower 1. During the Sydney Covid-19 lockdown in 2020-2022, CBA moved staff into their new offices, CBP North, and CPB South (Commonwealth Bank Place North and South), on Harbour Street, near Tumbalong Park. In October 2023, CBA occupied levels 14-21, and 27 of DP1 (Darling Park Tower 1). By the end of 2023, CBA moved the remaining staff from levels 14-21 out of DP1.

As of October 2024, all Commonwealth Bank staff members work out of CBP South, CBP North, The Foundry (Redfern, NSW), Axel (Redfern, NSW), or CBS (Commonwealth Bank Square), with the exception of the remaining staff in DP1.

File:Commonwealth Bank branch office.jpg

This division delivers financial services to personal and small business customers. It provides bank accounts and credit products to consumers.

Premium Business Services was formally split into two departments in 2009, Institutional Banking & Markets (IB&M) and Business & Private Banking (B&PB). IB&M includes areas of the bank that provides services to Institutional Clients and Global Markets. B&PB includes areas of the bank that provides services to Business customers and private banking customers.

Wealth Management brings together the Groups funds management platform, master funds, superannuation, insurance and financial advice business support. Colonial First State, Colonial First State Global Asset Management and CommInsure all form part of Wealth Management. CBA has been granted a MySuper authority, enabling it to continue to receive default superannuation contribution from 1 January 2014.

The following individuals have been appointed to serve as chief executive of the Commonwealth Bank of Australia, or precursor titles:{{Cite web|title=Past leaders|url=https://www.commbank.com.au/about-us/our-company/history/past-leaders.html|access-date=30 June 2017|website=commbank.com.au}}

The Commonwealth Bank's international presence includes:

• Retail banks in New Zealand (ASB Bank), Turkey (CommBiz) and Indonesia (99% of PT Bank Commonwealth)
• Banking investments in China (20 per cent in both Qilu Bank and Bank of Hangzhou) and Vietnam, (20 per cent stake in Vietnam International Bank)
• County banks in Hebei and Henen Provinces of China (15 branches and 8 sub-branches)
• Commonwealth Bank branches in London, New York City, Tokyo, Hong Kong, Shanghai, Beijing, Singapore, Auckland, Turkey and Mumbai
• Joint venture life insurance businesses in Indonesia (PT Commonwealth Life) and China (37.5% stake in BoCommLife)
• First State funds management business in the United Kingdom, Germany, France, Hong Kong, Singapore, Indonesia, Japan, United States and Dubai
• Representative office in Hanoi
• A Global Capability Center in Bangalore, India

The Commonwealth Bank is Australia's largest retail bank and offers customers a range of products and services, including loans, credit cards, transaction and savings accounts. It has the largest branch and ATM network.{{Cite news|url=https://www.finder.com.au/biggest-atm-network-australia|title=The biggest ATM network in Australia revealed {{!}} finder.com.au|last=Liu|first=Shirley|date=2016-02-25|work=finder.com.au|access-date=2018-02-14|language=en-US}} It also offers services to people planning to move to Australia.{{Cite web|url=https://www.commbank.com.au/personal/can/moving-to-australia.html|title=Moving to Australia - CommBank|website=www.commbank.com.au|language=en|access-date=2018-02-14}}

The Commonwealth Bank offers online banking services through NetBank. NetBank allows customers to transfer funds, manage accounts, access assets and liabilities and also manage savings and saving goals.{{cite web|title=Online Banking - Commonwealth Bank|url=https://www.commbank.com.au/personal/online-banking.html|website=Commonwealth Bank|access-date=13 February 2018}} NetBank is also offered with a mobile app available for iOS and Android.{{fact|date=August 2023}}

Beem It is an instant payment free-to-download mobile application owned by Commonwealth Bank, NAB and Westpac later sold to Eftpos Australia. It offers an instant payment transfer service between registered users of the app regardless of which bank they are with. The app's main features include options to pay, transfer, request and split money.{{Cite web|title=Beem It {{!}} Pay Request Split|url=https://www.beemit.com.au/|access-date=2020-09-03|website=Beem It|language=en}}

• Bankwest
• Colonial First State
• CommInsure
• Commonwealth Securities

• PT Bank Commonwealth (Indonesia)

• ASB

• TR Commbiz (Turkey)

Commonwealth Bank has been sponsoring Cricket Australia for the women's game since the 1990s.{{Cite web |last=VerdictStaff |date=2021-09-20 |title=Commonwealth Bank extends sponsorship deal with Cricket Australia |url=https://www.retailbankerinternational.com/news/commonwealth-bank-extends-sponsorship-deal-with-cricket-australia/ |access-date=2023-07-21 |website=Retail Banker International |language=en-US}}

In April 2021, Commonwealth Bank secured a four-year partnership deal with Football Australia for the naming rights of the women's national football teams as the Commonwealth Bank Matildas, Commonwealth Bank Young Matildas, and Commonwealth Bank Junior Matildas.{{Cite web |date=13 April 2021 |title=Commonwealth Bank and Football Australia partnership to elevate the women's game |url=https://www.commbank.com.au/articles/newsroom/2021/04/commonwealth-bank-football-australia-partnership.html |access-date=2023-07-21 |website=www.commbank.com.au |language=en-AU}}{{Cite web |last=Ward |first=Miranda |date=2021-04-13 |title=Commonwealth Bank backs Matildas in naming rights deal |url=https://www.afr.com/companies/media-and-marketing/commonwealth-bank-backs-matildas-in-naming-rights-deal-20210413-p57ip0 |access-date=2023-07-21 |website=Australian Financial Review |language=en}}

In November 2022, FIFA announced that Commonwealth Bank has signed on as an official supporter for the 2023 FIFA Women's World Cup.{{Cite web |last=Welch |first=Kalila |date=2022-11-14 |title=CommBank named official bank supporter of 2023 FIFA Women's World Cup |url=https://mumbrella.com.au/commbank-named-official-bank-supporter-of-2023-fifa-womens-world-cup-764891 |access-date=2023-07-21 |website=Mumbrella |language=en-US}}{{Cite web |last=Inside FIFA |date=13 November 2022 |title=Commonwealth Bank announced as FIFA Women's World Cup Australia & New Zealand 2023™ Official Supporter |url=https://www.fifa.com/tournaments/womens/womensworldcup/australia-new-zealand2023/media-releases/origin1904-p.cxm.fifa.com/commonwealth-bank-announced-as-fifa-womens-world-cup-australia-and-new |access-date=2023-07-21 |website=www.fifa.com |language=en}}

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{{Reflist}}

• {{Cite book|last1=Phillips|first1=Bronwyn|title=100 Years Together|last2=Hock|first2=Peter|publisher=Focus Publishing|year=2011|isbn=978-1921156632|location=North Sydney, New South Wales}}

{{Commons category|Commonwealth Bank of Australia}}

• {{Official website|https://www.commbank.com.au/}}
• {{URL|https://www.asb.co.nz/|ASB Bank}}
• {{URL|https://www.bankwest.com.au/|Bankwest}}
• {{URL|https://www3.colonialfirststate.com.au/|Colonial First State}}
• {{URL|https://www.commsec.com.au/|CommSec}}
• {{URL|https://www.commbank.info/|CommBank Info}}
• {{URL|https://nla.gov.au/nla.obj-37147970|Commonwealth Bank ephemera}}
• {{URL|https://www.commbiz.com.au/|CommBiz Turkey}}

{{Finance links

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