Inquiry to help CBA

COMMONWEALTH Bank shareholders should welcome the banking watchdog’s inquiry into the lender as a nonpolitical intervention that can restore shine to a tarnished brand, an analyst says.

Morningstar analyst David Ellis said the Australian Prudential Regulatory Authority inquiry into the CBA’s governance, culture and accountability represents a good outcome for the bank following a series of scandals.

“We expect the eventual outcome and fallout of the inquiry to be a pivotal point in rebuilding the bank’s tarnished brand,” Mr Ellis said.

Shares in the CBA closed down 1.2 per cent yesterday at $75.73 and are off almost 10 per cent in the past month.