Bank of Queensland (BoQ) said it acted appropriately when providing loans to clients of collapsed financial advisory firm Storm Financial.
 
"Based on the information obtained to date in the course of its internal review and legal opinion obtained to date, the bank believes that there was no dishonest or illegal practice or conduct by Bank of Queensland in connection with Storm clients," the bank said in a submission to the Parliamentary Joint Committee (PJC) inquiry into financial products and services on Friday.

BoQ did say it had identified aspects of the bank's policies, practices and procedures that are in need of improvement, but that they were not limited to Storm loans.

"The deficiencies relate to internal banking practices, but do not relate to the integrity of the way in which the bank deals with its customers," BoQ said.

"Correcting such deficiencies is part of the normal business improvement program that every bank undertakes," it said.

BoQ has 261 customers who were introduced by Storm and who borrowed $85.8 million in total from the bank for the purpose of investing with Storm.

The bank said it did not provide margin loans to Storm clients.

It predominantly provided home equity loans, which were invested in products recommended by Storm.

These loans were standard bank products allowing people to access equity in their own homes for other purposes, including for investments, the bank said.

"Loans were made in good faith and accepted by the parties in good faith. BoQ did not provide opinions or advise as to where or how these funds should be applied."