Outgoing Liberal veteran Philip Ruddock has called on the Commonwealth Bank to work on restoring its reputation following its "unconscionable" conduct.
A parliamentary inquiry into impairment of customer loans has found a "persistent pattern of abuse" by banks exploiting the vulnerability of borrowers.
Its report concluded that while ANZ had realised its conduct was questionable and voluntarily sought to make recompense to customers, the Commonwealth Bank has consistently denied any issues with its conduct.
"The evidence of witnesses and submitters to this inquiry has strongly called into question the Commonwealth Bank's denial of unreasonable or unethical conduct," the report said.
Mr Ruddock said the bank had clearly acted "unconscionably".
While he was a great fan of the bank, he wanted to see its reputation restored.
"I hope they will recognise it will only be restored if they are prepared in good faith, with independent arbiters to deal with these issues," he told parliament on Thursday.
"If they do that, there may be some justice."
The report makes 11 recommendations, including new laws prohibiting conflicted remuneration for all bank staff.
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