Commonwealth Bank chief Ian Narev has defended the bank's high interest rates on credit cards and is more than willing to discuss this at a Senate inquiry.
Labor and crossbench senators are establishing an inquiry into credit card interest rates with their gap between the cash rate at a record high.
Treasurer Joe Hockey has said he will not stand in the way of an inquiry, but already has the Council of Financial Regulators investigating the issue.
CBA charges just over 20 per cent on some of its cards compared with a cash rate at an all-time low of two per cent, and even its low-rate card has a rate of 13.5 per cent.
Mr Narev said credit card debt is unsecured, unlike mortgage debt that is backed by the security of a house.
"The risk to the bank is significantly higher and the higher interest rates (are) reflective of the higher risk over time," he told Sky News on Tuesday.
He said when the bank sets interest rates it has to gauge what would happen if rates go up one, two or three per cent in a quick period of time.
"When you are in a low interest rate environment it is easy to forget that, so we have to think a couple of years ahead," he said.
He does not believe an inquiry into credit cards is necessary, but understands people have legitimate concerns.
"The best way to resolve those concerns is through an inquiry, we will participate in," he said.
Mr Narev committed an extra $50 million to its financial literacy program for schools during an address to a Committee for Economic Development of Australia in Canberra, which aims to teach children the rights and wrongs of taking on credit, including the use of cards.
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