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$54 million: ANZ and Westpac interest profits following RBA cut

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Australian Broker | 11 Dec 2012, 08:00 AM Agree 0
Two of the big four stand to gain $54 million after being the slowest to pass on rate cuts
  • Mat | 11 Dec 2012, 09:58 AM Agree 0
    ING immediately announced they would pass on 0.25% - sounds good right? Shame they are the slowest to actually pass it on - not until the 24th, nearly three weeks after the RBA announcement! CBA and NAB both passing on their 0.20% cuts on the 10th December, just six days after the RBA meeting. I truly wish there were some rules about how long lenders can delay making a decision, and how long before they have to pass it on.
  • Garry | 11 Dec 2012, 10:03 AM Agree 0
    Its time this govt grey some balls and stepped up to the plate. The banks have a "community responsibility" to follow the RBA instead of doing what they do.

    Gillard - get your bloody act together.
  • Jerry Gibb | 11 Dec 2012, 11:26 AM Agree 0
    Whats the point in writing the Government is as weak as you know what!!!
  • Damien | 11 Dec 2012, 11:30 AM Agree 0
    Disappointing , but predictable. As for this Government doing anything productive ( with any issue that is), well why start now !!!
  • BJ | 11 Dec 2012, 12:36 PM Agree 0
    Bring back in FULL the first home owners leg up, pass on the rate cuts in full, let's get the government to wave a magic Swan, bring back the Biff. Let's all sit with thumbs stuck in the proverbial and pray for a return to Pre GFC.

    For the ones that missed it, tounge in cheek!

    Seriously, have we any idea what so ever about what economic drivers are at play? It is not all about home owners!!!!

    Rather than take a self interest approach, consider the broader issues. Most of the rhetoric about banks and political clout or lack thereof is driven by a limited view of the world, no understanding of capital markets and other competing interests.

    Advisor or home loan salesman, where do you fit?

    Get serious!
  • Mark S | 11 Dec 2012, 01:11 PM Agree 0
    Garry and Dammien, how on earth can you blame governemnt for Lenders failure to reduce rates in full or taking their time to do it. Lenders are commercial enterprises who act in their own interests based on their commercial reasons.

    I intensley dislike how Lenders delay or reduce rate cuts for exisiting borrowers, yet apply the decrease to new customers almost immediately. But that is not the Governments fault, just the Lenders.

    Pity the poor people that still have loans funded by AMS/GE Money/Pepper. They only get a rate cut of .18% applied on the 31/12/12!!
  • Damien | 11 Dec 2012, 01:35 PM Agree 0
    Mark, my point is that I feel the banks are expoiting this weak as p... goverment and it's own borrowers.

    Can you imagine the banks getting away with what they these days are under the Howard and Costello days, highly unlikely I'd suggest , or most certainly not to the degree that they have since the GFC.
  • Damien | 11 Dec 2012, 01:51 PM Agree 0
    And while we’re are at it Mark , how about CBA's recent decision to increase its EXISTING CUSTOMERS lo-doc loans by 0.25% , now that's what I call a greedy cash-grab and extremely poor form.

    Thankfully, I only have 2 lo-doc loans at CBA , both with a 100% perfect payment history, and thankfully they are now in the process of exiting CBA as a matter of principle, commercial justification my rear.
  • Jim | 11 Dec 2012, 04:27 PM Agree 0
    Quite clearly Mark doesn't have a clue. This government can pass legislation if it wishes. It can also regulate to a much higher level the decisions the banks make.They could very easily pass an Act that requires banks to pass on every second cut in full if they wanted to. But they don't want to. What is the point of slashing interest rates to stimulate the economy, if the Joe Citizen doesn't see the cut. Banks making billions more in profit doesn't stimulate the economy!!!
  • JohnW | 11 Dec 2012, 11:02 PM Agree 0
    Oh god, not this broken record again.


    What this guy said:

    [Quote BJ]
    ----------------
    Seriously, have we any idea what so ever about what economic drivers are at play? It is not all about home owners!!!!

    Rather than take a self interest approach, consider the broader issues. Most of the rhetoric about banks and political clout or lack thereof is driven by a limited view of the world, no understanding of capital markets and other competing interests.

    Advisor or home loan salesman, where do you fit?
    ----------
  • Manly Dragon | 11 Dec 2012, 11:19 PM Agree 0
    I agree with Gary (grey some balls) much older men are far more effective in running the country....
  • Positive Broker | 12 Dec 2012, 06:23 AM Agree 0
    There is no doubt the banks are entitled to do what they like in the interests of shareholders and depositors as well as borrowers. But, the fact is they have too much power and not enough competition. They wouldn't be bale to do this if there was genuine competition.
  • PETER VELLA | 12 Dec 2012, 06:43 AM Agree 0
    REGARDING THE BANKS AND RATE CUTS THE ANSWER IS SIMPLE TO MUCH GLOOM STOPS THE BOOM FOR MOST TO MAKE A LARGE DECISION THE RETIREES LESS INCOME BECAUSE THE RBA RATE REDUCTION WOULD NOT HAVE NEEDED TO CONTINUE AS MUCH IF BANKSCAN GIVE A HAIRCT EACH TIME ONE IS ANNOUNCED
    SOLUTION SIMPLE REVISIT THE BANKING RULES AND AMMEND AS NEEDED IF NOT GOVERNMENT SHOULD START BY SELLING COVERDBONDS AND HAVE 4% FIXED RATES FOR HOME LOANS SIMPLE......
  • Keith of the West | 12 Dec 2012, 01:10 PM Agree 0
    I can't see the issue here. The major banks' hold all the monopoly money here folks, & have more clout than Wayne Swan & co. They will do as they please,accept it and move on, as we often forget it was the strenght of our major banks' that saw us through the GFC, while all of our western counterparts had Bank's collapsing and/or seeking government bailout.
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