Ms Derville Rowland:

Precisely because we completely agree with the Senator that it was observable that the behaviour informed by the mindset of the banks was far from that which all of us expect, the culture reviews were undertaken. The focus of the reviews, because we saw the red flags in the tracker mortgage examination, the way that the compensation offers negotiated with the Central Bank were not what we expected and that we had to do more than 200 turns of challenge to get those up to any kind of a level at all, was precisely conduct in the wrong place. The culture review was undertaken. It was not a focus on the views of customers in the public, let me be clear, because we had a view on what that was, which was the lightning rod for undertaking these five cultural investigations.

The investigations were very detailed, forensic and careful pieces of work, with behavioural psychologists, prudential supervisors and conduct supervisors who focused on the senior leadership teams of the banks because these are so significant in delivering, from the inside out, the mindset and value the businesses place on customers and how they put customers, as they espouse to do, at the centre of their business, as well as the divergence from that. The language in the report represents an overview of the specific lender reports, which each bank got, but it has very important and significant findings.

We are meeting the banks' boards and being very clear about our expectations. However, the culture is for them to drive and it is for them to lead the tone from the top. The focus definitely was on the senior executive team and how it will ensure it is clear about what that risk culture and consumer focus culture looks like, and how it will embed it into its structures and processes. Precisely because we take this seriously, we will be in at firm level supervision measuring how the banks deliver that. We will assess whether they look at the complaints people are making and find the patterns; how they train their staff; whether they are making sure their staff are trained to give outcomes that are to the benefit of the customer, not to sell 20 products to them that generate more profit; and whether they check to see what they espouse as the culture for consumer-centricity is in fact being lived. The proof of the pudding will be in the work that they do and this will take time because clearly their behaviour has not been in the right place.