Greens fee moves meet opposition

By BN | 22/07/2010 5:50:00 AM | 0 comments

The Australian Bankers' Association is seeking to head off possible legislative changes to permissable bank fee structures, should the Greens win a balance of power in the Senate in the coming election.

The banking lobby has lodged a submission to a Senate inquiry examining a controversial Greens bill, introduced into Parliament by Australian Greens Leader Bob Brown last month, which calls for wide-ranging caps on bank fees, which Brown said would stop bank "fee-gouging".

The AFR reports the association is concerned that fee structure changes may result from deals with the Labor party, should the Greens gain a balance of power as a result of the election.

The bill would require banks to cap mortgage exit fees, and offer home loan products with interest rates that would only increase only in line with a lender's cost in funds.

Other changes would require banks to cap fees on savings accounts and ATM transactions.

Introducing the bill, Australian Greens leader Bob Brown said the average Australian pays around $1000 in bank fees every year, 22% more than in the UK and 10% more than the US.

"Self-regulation by the big banks is not going to protect the public," Senator Brown said.

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