The banking regulator and Treasurer Scott Morrison have slammed the Commonwealth Bank for a "widespread sense of complacency" and "lack of accountability" that has led to multiple regulatory breaches.

The Australian Prudential Regulation Authority (APRA) today handed down a damning report about culture at the Commonwealth Bank in the wake of allegations that it broke anti-money laundering and counter-terrorism financing laws on almost 54,000 occasions.

In its final report into governance, accountability and culture at the CBA, APRA said the bank's "continued financial success dulled the senses of the institution".

The report found the CBA had a "widespread sense of complacency, a reactive stance in dealing with risks, being insular and not learning from experience and mistakes."

APRA also pointed to an "overly-collegial and collaborative working environment" which lessened the opportunity for constructive criticism.

While emphasising the soundness of CBA's financial position, Mr Morrison said the APRA report was a damning rap sheet and called it "required reading" for every financial institution in Australia.

"It found there was a complacent culture, dismissive of regulators, an ineffective board that lacked zeal and failed to provide oversight, a lack of accountability and ownership of key risks by senior executives, a remuneration framework that had no bite and they were reactive, slow and had under-resourced systems and processes internally," he told reporters.

"A lack of accountability is a common theme. An inability to identify who is accountable when things have gone wrong. Inadequate remuneration outcomes for adverse risk and compliance outcomes."

Mr Morrison warned board directors generally that they need to "step up", saying it is a very serious job, not a retirement job.

"This should be a wake-up call for every board member in the country, particularly those who are the custodians of the savings shareholdings of millions of Australians, they expected better those shareholders of board members and they have been let down, terribly," Mr Morrison said.

The Treasurer also said he expected more senior heads would roll at CBA, after its chief executive Ian Narev left earlier this year and two long-serving board directors stood down.

However, Shadow Treasurer Chris Bowen said he feels enough action is being taken, especially in light of the banking royal commission.

"At this point I see no reason to call for the resignation of the chair of the CBA or other directors," he told reporters.

Instead, Mr Bowen said Mr Morrison should go, arguing that at the same time as APRA announced this investigation in August last year, the Treasurer had again mocked Labor's calls for a banking royal commission.

"The Australian people don't need any more evidence that this is a Treasurer who gets the big calls wrong," he said.

"He has no judgement when it comes to the big decisions and is not up to the job."

'I made mistakes', admits CBA CEO

Responding to APRA's report, the CBA acknowledged the regulator's concerns.

Speaking to The World Today, the bank's new chief executive Matt Comyn, who headed up CBA's key retail banking division prior to taking the top job, admitted errors.

"I think there's certainly things I would have done differently over that time," he said.

"I made mistakes, I think there's a number of things that we, as a leadership team and senior executive team, would've done differently."

Sorry, this video has expired 'It tells us a fair bit about the way big banks are run' Peter Ryan on APRA report

The Commonwealth Bank offered APRA an enforceable undertaking in response to the report.

The undertaking is to address all of the report's 35 recommendations, including tighter board and executive governance on non-financial risks, tougher accountability backed by pay outcomes and an upgrading of risk management and compliance.

APRA will also add $1 billion to the CBA's minimum capital requirement until the changes required by the undertaking are completed to the regulator's satisfaction.

When asked if CBA was "getting off lightly", Mr Comyn replied, "no, definitely not."

That was a view supported by Shadow Treasurer Chris Bowen.

"An enforceable undertaking is a serious undertaking, in fairness, it's a key part of our regulatory infrastructure. I have no quarrel with enforceable undertakings," he said.

Mr Comyn said the bank's top 500 leaders would be given a printed copy of the report and required to read and respond to it within the next week to help drive cultural change.

However, former CBA employee and whistleblower Jeff Morris told ABC News there needed to be further leadership changes at the bank.

"The current board have demonstrated that they have no right to be there, and they should certainly go," he said.

"On the other hand ... what a great opportunity for the incoming CEO, the bank could hardly sink any lower could it? So, no matter what he does he has to make things better."

Sorry, this video has expired 'They have no right to be there' whistleblower on CBA board after APRA report

The APRA inquiry was launched on August 28 after the Commonwealth Bank was accused by the financial intelligence agency of breaching anti money laundering and counter terrorism financing laws on 53,700 occasions.

The APRA panel was chaired by former APRA chairman John Laker, who examined CBA's culture with former ACCC chairman Graeme Samuel and company director Jillian Broadbent.

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