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May 2, 2012

Why we’re all complicit in the banks’ gouging

Whinge all you want about the big banks failing to meet the RBA's rates cut, but chances are you're benefitting from their gouging, say Glenn Dyer and Bernard Keane.

Angry that ANZ can record an interim profit of $2.97 billion while refusing to pass on the RBA’s rate cut? Annoyed that banks continue to exploit the lack of competition to belt consumers and business with higher interest rates and fees?

50 comments

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50 thoughts on “Why we’re all complicit in the banks’ gouging

  1. Suzanne Blake

    Swan can take credit for the rate cut. He and Gillards policy of crueling business and consumer confidence has led to this.

    Swan says that the interest rates are lower now that at any time that Howard was PM. He is right. We have had a GFC since then and we now have a Government who has blowed many many billions and we will take a generation to pay it back. Hopefully.

  2. ianjohnno1

    Yes, that is one downside of superannuation; many now find that greed is almost compulsory. More and more little capiltalists.
    Yes, I suppose I am one…

  3. David Allen

    Where does this, ‘lack of competition’, idea come from?

    In my small town of about 15,000 souls, apart from the big 4 alleged cartel, we have Suncorp, Bank of Qld, Bendigo and numerous building societies and credit unions.

    Competition for deposits is ferocious and generally led by internet only banks, most of whom appear to also offer home loans.

    Got me beat?

    Disclaimer. I have no connection whatsoever to any bank other than as a depositor and via superannuation.

  4. Wallace Scott

    Given the level of security (government backed) the big 4 banks enjoy it is not necessary for them to try keeping that margin profit which they gained since the GFC. They’ve only been passing rate cuts to mortgage holders without passing to business and that’s one of the main things that is hurting business and holding down the economy.

    Anyway, if they don’t pass rate in full then it keeps inflation low then there can be one further rate cut from the RBA which will help holding down the AUD from bolting towards $1.10USD and kill our industri,es. The dollar was resuming its upwards trend lucky we got 50 basis points cut to stall it. The 100 week average is reaching $1.01USD now it’s getting dangerous, too large volume of long positions have built up eventhough a drop of more than 20% of long positions occurred since the RBA indicated last month that it will cut rate pending inflation data, and it will be very hard for the dollar to go back below parity. Hopefully commoditi,es prices and China growth stay moderate and US accelerate growth that may help keeping our dollar staying between 95cents to 1.05 cents.

  5. Wallace Scott

    God, moderation again.what’s wrong with Crikey???

  6. Wallace Scott

    Given the level of security (government backed) the big 4 banks enjoy it is not necessary for them to try keeping that margin profit which they gained since the GFC. They’ve only been passing rate cuts to mortgage holders without passing to business and that’s one of the main things that is hurting business and holding down the economy.

    Anyway, if they don’t pass rate in full then it keeps inflation low then there can be one further rate cut from the RBA which will help holding down the AUD from bolting towards $1.10USD and kill our industr,i,es. The dollar was resuming its upwards trend lucky we got 50 basis points cut to stall it. The 100 week average is reaching $1.01USD now it’s getting dangerous, too large volume of long positions carry trades have built up eventhough a drop of more than 20% of long positions occurred since the RBA indicated last month that it will cut rate pending inflation data, and it will be very hard for the dollar to go back below parity. Hopefully commoditi,es prices and China growth stay moderate and US accelerate growth that may help keeping our dollar stay,ing between 95cents to 1.05 cents.

  7. Wallace Scott

    aaargfghhhhh

  8. Apollo

    Too true we’re all greedy hypocrites!

    Oh, SB is at it again. I remember she told Jimmy or someone that the Labor government spend too much and caused inflation and the Reserve Bank has keep interest high consequently hurting borrowers. Now she says that the rate cut and low interest is due to Labor’s overspending.

  9. [email protected]

    I do use the banks to further my interests as much as possible. My ANZ savings accounts give monthly interest payments and offer a higher rate than ANZ term deposit accounts.

    I’m also aware that ANZ uses me to further their interests. Recently I deposited my US pension cheque from the Bank of America to be exchanged for Australian dollars. Four weeks later this was done and my account charged A$89.90 for the privilege [this did not include exchange rates…not only the miners are less than amused by the high A$!]. After speaking with various levels of ANZ staff for some time, I finally used the words I should have introduced earlier ‘banking ombudsman’. The full amount was refunded to my account in a few minutes.
    Always remember the magic words…’banking ombudsman’…or, of course any substitue ombudsman.

  10. Wallace Scott

    Still has not let my comment through? Banks have not been passing rate cuts to business that’s why business and the economy is hurt, they only passed to mortgage holders.

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