All Were you aware that there were decisions that needed to be made I – shouldn’t say there were decisions that were made to attempt to manage “needed” – that risk for the Bankwest portfolio by setting caps on the amount of commercial property exposure?I wasn’t, no. No. Okay?I am aware today of the concept of caps and targets we have in CBA on industries, but not not then. – Okay. Are you aware now that in 2009 Bankwest started to introduce, internally, caps on the extent of its exposure to commercial property?I’m aware now, yes. Not then. Sorry?Not then. No, no, I understand. But, you’re now coming now to look back at a file from 2010?Yes. It’s important that we be able to put this in some sort of context which is, as you understand it as at 2009, first Bankwest had a significant exposure to commercial property. You agree with that?Yes. Second, it was regarded as an overexposure to commercial property?Yes. Third, that in order to manage that overexposure there were caps that were in place on the lending in commercial property?As a result of the review of this file, I understand that, yes. All right. And then that has a ramification to the approach that’s taken to the management of the book; you agree with that?Yes. MR SCERRI: What does that mean? The witness says he hasn’t seen THE COMMISSIONER: If the witness doesn’t know, he will no doubt tell me, Mr Scerri. MR SCERRI: Well but the question doesn’t make sense, your Honour, with the – greatest respect. THE COMMISSIONER: Yes. Well, Mr Hodge, do you want to rephrase the question? MR HODGE: No, that’s fine. I don’t want to rephrase the question. Can I take you, then, to paragraph 59 of your statement, Mr Perry. Could we bring up paragraph 59 of Mr Perry’s statement. What you say in paragraph 59 is that you’re not aware of any Bankwest records that indicate that there was any general policy to withdraw from funding property dealing for existing customers before the
All Were you aware that there were decisions that needed to be made – I shouldn’t say “needed” – there were decisions that were made to attempt to manage that risk for the Bankwest portfolio by setting caps on the amount of commercial property exposure?I wasn’t, no. No. Okay?I am aware today of the concept of caps and targets we have in CBA on industries, but not – not then. Okay. Are you aware now that in 2009 Bankwest started to introduce, internally, caps on the extent of its exposure to commercial property?I’m aware now, yes. Not then. Sorry?Not then. No, no, I understand. But, you’re now coming now to look back at a file from 2010?Yes. It’s important that we be able to put this in some sort of context which is, as you understand it as at 2009, first Bankwest had a significant exposure to commercial property. You agree with that?Yes. Second, it was regarded as an overexposure to commercial property?Yes. Third, that in order to manage that overexposure there were caps that were in place on the lending in commercial property?As a result of the review of this file, I understand that, yes. All right. And then that has a ramification to the approach that’s taken to the management of the book; you agree with that?Yes. MR SCERRI: What does that mean? The witness says he hasn’t seen THE COMMISSIONER: If the witness doesn’t know, he will no doubt tell me, Mr Scerri. MR SCERRI: Well – but the question doesn’t make sense, your Honour, with the greatest respect. THE COMMISSIONER: Yes. Well, Mr Hodge, do you want to rephrase the question? MR HODGE: No, that’s fine. I don’t want to rephrase the question. Can I take you, then, to paragraph 59 of your statement, Mr Perry. Could we bring up paragraph 59 of Mr Perry’s statement. What you say in paragraph 59 is that you’re not aware of any Bankwest records that indicate that there was any general policy to withdraw from funding property dealing for existing customers before the
transcript-28-may-2018.docx