Commonwealth Bank boss Ian Narev has defended the bank's exorbitant credit card interest rates, insisting it's a high risk debt.  Mr Narev was grilled on credit card rates when he fronted the House of Representatives economics committee on Tuesday.  He was asked why the cash advance rate on the bank's low rate card was more than 21 per cent, when the official cash rate is just 1.5 per cent.  "To me, that's gouging, that's excessive," coalition backbencher Scott Buchholz said.  "It is a highly profitable part of the business, how is that fair?"  Mr Narev said he understood the concerns but argued the bank did not encourage its customers to take on high amounts of high-risk debt.  The bank was balancing the needs of customers and shareholders when it made decisions on rates, he said.  He conceded there were some products "which could probably be a bit more cheap".  "I don't think there's any product under which I could sit here in good conscience and tell you we've made the absolute perfect balancing decision," he said.  "What we can't do or shouldn't do as a bank ... is cut rates significantly only then to have to jack them up very significantly when as is always the case in economic cycles, things go a different way," he said.  Mr Buchholz asked Mr Narev whether he'd consider lowering credit card rates, given he told the committee he was willing to listen to suggestions.  Two or three per cent would be a good start, he said.  "I said we came in here with a spirit of openness and listen to suggestions and we will," Mr Narev replied.
The head of Commonwealth Bank has defended credit card interest rates while conceding some of the bank's products could be cheaper.