(Adds background in paragraphs 2-3, further details on target...

(Adds background in paragraphs 2-3, further details on target in paragraph 4, executive quote in paragraph 5)

Nov 1 (Reuters) - National Australia Bank Ltd (NAB) said on Wednesday it has set a new target to more than double its lending to indigenous businesses and communities to at least A$1 billion ($633.70 million) over the next three years.

The move comes at a time when banks have borne the brunt of increased regulatory scrutiny in a push for better banking outcomes for indigenous consumers, including access to better finances and quality of life.

Earlier this year, a review by the country's corporate regulator found banks were falling short of meeting targets for moving First Nations people into low-fee accounts.

NAB, the country's second biggest lender, said the new lending target highlights a surge of more than 140% based on its current lending of just A$413 million helping stimulate "sustainable business growth" among indigenous communities.

"During the last two years, we have put the building blocks in place to better support our growing First Nations business customer base, from both a commercial and cultural perspective," said Andrew Irvine, NAB Group Executive Business and Private Banking.

($1 = 1.5780 Australian dollars)