The banking giant has released its final report from its independent reviewer
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The Commonwealth Bank of Australia (ASX: CBA) share price is in positive territory on Tuesday. This comes after Australia’s largest bank provided an update regarding its prudential inquiry remedial action plan.
During early afternoon trade, CBA shares are up 0.24% to $104.94.
CBA completes remedial action plan
In today’s statement, CBA published the final report on its remedial action plan, improving on governance, culture, and accountability issues.
In 2018, the Australian Prudential Regulation Authority (APRA) launched an inquiry into CBA following a number of scandals. This included giving out poor advice, major anti-money laundering breaches, fee errors, and issues with insurance.
At the time, APRA’s findings led it to believe the bank had a negligent attitude to non-financial risks.
Independent consulting firm Promontory made a suite of recommendations to improve the bank’s culture. Since then, the agency has conducted quarterly reviews to monitor CBA’s progress in remedying the issues at hand.
As such, the bank has noted that all milestones have been completed and all recommendations have been implemented.
APRA will undertake further validation work to assess the sustainability of CBA’s improvements with Promontory. In addition, APRA will also continue to monitor the bank’s prudential inquiry work.
However, this latest report is unlikely to be directly affecting the CBA share price today.
CBA chief executive Matt Comyn commented:
Three years ago, we committed to delivering all recommendations in the prudential inquiry final report.
Completing the Remedial Action Plan is a significant milestone but we recognise there is still much more for us to do. Our focus is to now demonstrate that the changes we’ve made are sustained and continuously improved.
About the CBA share price
It has been a strong 12 months for the CBA share price, rising by more than 50% despite moving in circles since mid-June. However, when looking at the year to date, the company’s shares have travelled more than 25% higher.
Based on today’s price, CBA commands a market capitalisation of roughly $178 billion and has approximately 1.7 billion shares outstanding.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.