<?xml version="1.0" encoding="ISO-8859-1"?> <docID>327889</docID> <postdate>2024-08-29 13:29:49</postdate> <headline>‘Extreme shocks’ felt over cost-of-living: CBA boss</headline> <body><p><img class="size-full wp-image-286513" src="https://citynews.com.au/wp-content/uploads/2023/06/Australian_banknotes_in_wallet.jpeg" alt="" width="1016" height="677" /></p> <caption>Executives from the big four banks will appear over two days of hearings at a parliamentary inquiry.</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Andrew Brown</b> in Canberra</span></p> <p><strong>The head of the Commonwealth Bank has rejected claims its billions-of-dollars worth of profits have been made at the detriment of its customers.</strong></p> <p>The bank's chief executive Matt Comyn appeared before a parliamentary committee inquiring into the big four banks on Thursday.</p> <p>Mr Comyn said claims the bank's $9.8 billion profit came from overcharging customers with fees was a "fact-free rhetoric".</p> <p>"Business in Australia are being represented in this false dichotomy that for a company to earn any sort of income or profits, it is therefore inferred often, or directly related ... as some how being unjustly extracted from consumers," he told the committee.</p> <p>"It is really eroding trust in our institutions, in all of our institutions. I think it's a real cause for concern."</p> <div class="wire-column__preview__text" id="preview-body"> <p>While the Greens have called for a 40 per cent tax on companies making large profits, Mr Comyn said the move was "insidious populism".</p> <p>The chief executive faced questioning on why customers had to often pay surcharges on purchases made by card, but Mr Comyn said it was not a direct comparison with cash.</p> <p>"The cost of acceptance of electronic payments has fallen by more than 30 per cent," he said.</p> <p>"We are one of the lowest, if not the lowest, cost of acceptance markets in the world."</p> <p>The hearings were being held amid cost-of-living concerns stemming from high interest rates and stubborn inflation.</p> <p>While Mr Comyn said the broader economy was "fundamentally sound", cost-of-living issues were affecting the bank's customers.</p> <p>"The effect of monetary policy is unevenly felt across the country with different experiences for borrowers and depositors ... households are spending more on essentials and are cutting back on discretionary spend," he told the inquiry.</p> <p>"Households and businesses have experienced extreme shocks in recent years: lockdowns, a demand surge, inflation and rapid interest rate rises. Many of our customers are finding it difficult to deal with the higher cost of living."</p> <p>The Commonwealth Bank executive said it had made more than 130,000 hardship payment arrangements with its customers in the past year.</p> <p>Young people were being disproportionately affected by cost-of-living pressures, with many having gone through their savings buffers, Mr Comyn said.</p> <p>"Savings are being depleted, particularly by working families. Younger Australians, who tend to have lower incomes and smaller savings buffers are the most sensitive to these changes in prices," he said.</p> <p>"The pressure has continued to build over the course of this calendar year, we can see that very directly and sharply."</p> <p>The executive also said the bank should be required to pay back scam victims if protections aren't enacted.</p> <p>"There should be a proportionate liability scheme, which says to all of these organisations, including, of course, us, that if you do not meet your obligations, then you will be required to reimburse customer losses," he said.</p> <p>"This liability scheme should be simple, efficient and fair for customers with a single front door to access and resolve disputes across scams, fraud, cyber security and financial crime prevention."</p> <p>The head of Westpac, Peter King, will also give evidence before the parliamentary committee later on Thursday, while ANZ and NAB bosses will front up on Friday.</p> </div> </body>