Australia's fourth-largest bank by assets said it will also drop dishonour fees from pensioners' accounts and behave as a model litigant in cases involving small businesses, among other changes. The lender did not say whether the moves would have a financial impact.

A powerful inquiry into Australia's finance sector, called a Royal Commission, found widespread misconduct and poor treatment of customers driven by greed, but did not recommend any structural changes to the industry.

(Reporting by Tom Westbrook; Editing by Leslie Adler)