Repairs begin at scandal-hit NAB

NATIONAL Australia Bank, the country's largest, has begun rebuilding its battered reputation with the appointment to the board of a respected executive who is likely eventually to become chairman.

The bank, which owns the Clydesdale, Yorkshire, Northern and National Irish banks, says Michael Chaney will take up the position in December. He is currently chief executive of conglomerate Wesfarmers and is on the boards of BHP Billiton and investment bank Gresham Partners.

A forex scandal in which NAB lost A$252m (£95m) earlier this year led to unprecedented upheaval at the bank. The scandal cost chief executive Frank Cicutto, chairman Charles Allen and several other executives their jobs.

The boardroom battle that blew up led to three directors quitting and chairman Graham Kraehe saying he would leave by mid-2005, earlier than he had previously indicated.

Opinion polls show that the lender's image has been damaged to the point where many customers are considering changing banks.

New chief executive John Stewart has said the culture of the bank needs to be fundamentally changed.