Bank of Queensland "has a case to answer" over its lending practices to clients of Storm Financial.
This is according to Bernie Ripoll the chairman of the federal parliamentary committee investigating the advisor's collapse, reported The Australian Financial Review.
BoQ chief executive David Liddy also came under renewed fire for his bank's practices and policies after he appeared before the committee on Wednesday night to explain its involvement.
The criticism comes as the bank prepares to file the first defense today against a representative action being taken on behalf of hundreds of former clients seeking damages.
The former clients also want to have their loans made void.
Liddy claimed that while several banking practices had to be reviewed, it had done nothing "dishonest or illegal".
Ripoll agreed that, on the evidence before the committee, BoQ's practices would need to be reviewed.
New industry role for BoQ's Liddy -David Liddy, CEO of Bank of Queensland, has been appointed as deputy chairman of the Australian Bankers' Association (ABA).
More 'Storm' clouds for BoQ - Bank of Queensland (BoQ) staff did not sign off on loans used to buy into investments promoted by failed financial planner, Storm Financial, it has been reported.