NAB boss Andrew Thorburn in $2.1 million pay cut as Royal Commission fallout bites; small banks fear squeeze from tough regulation and compliance

NAB chief executive Andrew Thorburn has copped a $2.1 million pay cut as a result of fallout and potential criminal misconduct emerging from the financial services Royal Commission taking his pay down to $4.3 million.

The penalty comes as chief executives including Mr Thorburn prepare to face intense grillings at the Royal Commission which begins its final round of hearings on Monday. 

At the same time, the Customer Owned Banking Association fears smaller banks might be squeezed out of the sector amid tougher compliance as a result of the Royal Commission. 

Here's my report from The World Today