Consumers calmer about rate slugs, major claims

by Adam Smith16 May 2012

A major bank boss has claimed that public anger toward the banks over interest rate slugs is subsiding.

ANZ Australia chief Philip Chronican has told News Ltd he believes the backlash over out-of-cycle rate rises is easing. He pointed to the lack of public outcry as the bank chose to pass on only 37bps of the Reserve Bank's 50bp May cut.

"I would never go as far as saying we've won the public debate, but I feel we've moved the debate on and that the commentary over recent weeks is evidence that at least people are now thinking more seriously about what the real issues are," Chronican told News Ltd.

Chronican defended the bank's decision to set its rate announcement for the second Friday of each month, a decision which delayed the bank's May rate announcement until 10 days after the Reserve Bank's meeting. He claimed the move decoupled the bank from the "dog and pony show" of the RBA monthly meeting.

COMMENTS

  • by JERRY gIBB 16/05/2012 10:07:37 AM

    What can a consumer do . One bank move the rates then the next moves down or up by a fraction. No government protection so you move to another bank and they do the same. Banks are greedy and stakholders being the shareholder and the CEO are the only one this industry looks after the rest of us are for the high jump.

  • by Casey 16/05/2012 11:14:34 AM

    I don't claim to have full knowledge of banks funding costs as I do not hold the exact information on what truly makes up funding costs. So it would be arrogant for me to tell the banks how to set their pricing. But certainly no where near as arrogant as making a statement like this. "people are now thinking more seriously about what the real issues are..."

    I'm sure the consumer would love to be told what the real issues are that they are supposed to be thinking about? I don't doubt the banks have more detailed and diverse information gathering sources about consumer sentiment. But maybe the banks might want to start asking for their money back because they ain't getting the right information. People ain't happy. They're just stuck for choice with very little leadership in the market.

    A quell in opinion does not win a debate. The consumer is just biding their time. I'd be curious to see if this so called debate win translates in a year or so when full account switching is made easier? More importantly debating with an already unsatisfied client market is not necessarily a customer winning combination.

    And the banks decisions after the RBA's efforts to provide direction for growth is referred to as a "dog and pony show". A show which in itself was not created by the consumer. The consumer simply reacted to the acts of the supplier. This "show" didn't existing when lenders were in line with the RBA.

    "Look after the customer and the business will look after itself" - Henry Ford

  • by Casey 16/05/2012 11:23:57 AM

    Just wanted to clarify, this isn't a bank bash. I still firmly believe they are essential to our economy. I just get frustrated with spin. Would love to see some leadership from lenders stepping up and saying, "Hey we are little limited on pricing movements right now. But can we talk about what we can do as a trade off that might be acceptable or help you?" The lender that does that openly will win consumer support.