Commonwealth Bank of Australia Ltd (CBA) has acknowledged that some of the bank’s lending practices contributed to the hardship faced by clients of collapsed financial adviser Storm Financial Ltd.

Australia’s biggest lender will suspend all repayment obligations until August 31 for all loans in relation to Storm Financial, Sydney-based CBA said in a statement on Wednesday.

“We are not proud of our involvement in some of these issues and we are working toward a fair and equitable outcome for our affected customers,” chief executive Ralph Norris said.

“Our customers can be assured that where we have done wrong, we will put it right.

“I am committed to the identification and resolution of all issues relating to the Bank’s involvement with Storm Financial.”

CBA was one of the banks which lent money to investors advised by Storm Financial, in some instances for margin loans borrowed against the equity in their homes.

As the value of shares plunged last year, many investors found that they owed much more money than what the shares were worth, forcing some to sell their homes.

CBA itself is owed about $27 million by Storm, which was wound up in March with total debts of about $80 million.

The government is conducting a parliamentary inquiry into the collapse of Storm.

CBA said it wasn’t responsible for the advice given to clients, as Storm Financial was a licensed financial adviser.

The bank said the financial impact on its own balance sheet was not material.

AAP