The banking royal commission has begun, and there were astonishing revelations during the first day of hearings.

In an incredible admission, NAB’s Executive General Manager of Broker Partnerships, Anthony Waldron, told the commision the bank knew a number of its branch managers took bribes in a bid to meet sales targets.

It found managers approved loans for customers they knew filled out their application forms with fraudulent information.

The first person witness to appear before the commission is Karen Cox, Coordinator of the Financial Rights Legal Centre.

She tells Ross she’s not surprised by the admission.

“No, I’m not surprised by it, Ross. It’s something we’ve known for a little while.

“At the extreme end of the spectrum, we’ve got people like a 69-year-old-women who’s magically become a self-employed mechanic after signing the forms.

“We’ve had situations where we’ve had elderly parents who have been signed up for loans where their house is on the line without even meeting the broker.”

Ms Cox tells Ross the main incentive to falsify documents is the remuneration.

“They get paid by how many loans and how big those loans are.

“Clearly there’s an issue. Clearly, there’s not sufficent incentive for banks to comply.”

Listen to the full interview below