National Australia Bank will investigate how and why it once gave drug boss Tony Mokbel up to $7 million in loans, the bank's chief executive says.
Court documents released this week reveal that Mokbel, now serving a 30-year sentence as the head of one of Australia's biggest drug rings, owed the bank between $6 million and $7 million in 2001.
While Mokbel had a declared income of less than $160 a week during this time, he was able to get loans with monthly interest and repayments of up to $80,000 a month, the court documents reveal.
NAB chief executive Cameron Clyne says he will examine how these loans were approved, and at what level.
"I'll be having a close look at it," he told Fairfax Radio on Friday.
"I'm happy to have a look and certainly if there's anything I discover that I think is not appropriate I'm very happy to come back and talk to you about it."
He noted that Mokbel was not the kind of person the bank wanted to be associated with and the loans dated back more than a decade.
"I don't know the facts of where his money was coming from at the time but it's certainly not the sort of culture I'm trying to build at the bank now," he said.