THE BANK OF QUEENSLAND says it will reform some of its practices in light of the Storm Financial collapse, including abandoning ''low-doc'' loans for retirees. But the bank, which has been accused of granting excessive loans to out-of-pocket Storm investors, has denied it took part in any dishonest or illegal activity linked to the failed financial planning company.
In a submission to a parliamentary inquiry examining Storm and other ill-fated investment outfits, Bank of Queensland said it was conducting an internal review of ''all things Storm-related''.
''The review has identified aspects of the bank's policies, practices and procedures that are in need of improvement,'' it said.
The bank said it would review its policies on dealing with customers through third parties or agents, acknowledging that ''with the benefit of hindsight'' the bank could have dealt directly with its customers introduced through Storm.
Storm encouraged its clients to borrow as much money as possible against their assets, including their homes, to reinvest in Storm products. The strategy fell apart as the global financial crisis hit.
The parliamentary inquiry received several submissions from Bank of Queensland customers who said they had received home loans that were beyond their ability to repay.
A Townsville woman last month became the first to launch a legal action against Bank of Queensland linked to Storm Financial, suing the lender for $400,000 in losses and damages.
