The Commonwealth Bank's spending on advertising and marketing has outstripped the rest of the big four Source: Reuters

A report by the Australia Institute found that CBA, ANZ, NAB and Westpac spent $1.044 billion on their advertising and marketing in 2008-09 - just as they were trying to redeem their reputations amid the global financial crisis.

Commonwealth bank alone spent a whopping $475 million on publicity, followed by NAB ($219 million), ANZ ($195 million) and Westpac ($155 million).

The massive outlay coincides with the CBA's controversial and big budget "dare to be different" ad campaign, which has been lambasted in some circles and lavishly praised in others.

It also marks a push by NAB to lead a new offensive in "feelgood" banking - slashing customer fees and presenting the banks as good corporate citizens.

The report noted that the banks' marketing budget amounted to more than the budget for the entire ABC.

It also accused the banks of using the ad money to push debt on to customers.

"Together, all this marketing allows [the] banks to take maximum advantage of the frailties of willpower and knowledge that real consumers demonstrate when faced with financial choices," the report revealed.

"And while constant marketing can maximise shareholder returns, the effect on broader society is a negative one. Given the enormous profitability of banking, it may be time to rein in the marketing of debt through greater regulation."

However, the Australian Bankers Association rejected the suggestion that banks were irresponsible in selling debt products to customers and noted there had been a rise in customer satisfaction over the same period.

"The ABA analysis of the Roy Morgan Research data shows that customer satisfaction for banks has reached a record level at 74.9 per cent," CEO Steven Munchenberg said. "In the past year alone, there has been a solid 2 per cent increase in satisfaction."

A Commonwealth Bank spokesman also noted that the bank's customer satisfaction rating had surged during the same period, rising from fourth to second.

"It's all about looking after your customers and building your business, which we have done," he said.

But the Australia Institute has called for tighter regulation of banks.